An analyst said Bitcoin $55,278.30 and predicts that the crypto market could see either a recovery or a permanent trend reversal in the near term. The analyst, known by the pseudonym Rekt Capital, told his 499,300 followers on social media platform X that Bitcoin and crypto assets have been experiencing strong selling pressure lately.
The End of the Selling Pressure is Near
Rekt Capital stated that sellers will not be able to sustain this downtrend for long, and this could open the doors for a bullish movement in the crypto market. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
“Strong selling across the market recently. Seller exhaustion likely imminent.”
The analyst emphasized that high volume bars should be watched in the short term, as such volume bars usually signal a bottom after sustained selling, which will be followed by either a strong bounce or a full trend reversal.
Signs of Seller Exhaustion on Charts
Taking a closer look at the Bitcoin chart, Rekt Capital said that one sign of seller exhaustion is a large volume bar on the daily chart.
“Bitcoin’s sell-side volume needs to be large enough to enter this orange box so that it reaches seller exhaustion levels, which then initiates a price reversal to the upside.”
Currently, sell-side volume has not yet reached the seller exhaustion levels seen in previous upward price reversals.
Long Term Bull Market
Despite the recent price correction, Rekt Capital believes that Bitcoin remains in a long-term bull market. The analyst noted that history suggests that Bitcoin could remain in its current bull market for another year at most.
“History suggests that Bitcoin has at most one year left in its current bull market.”
At the time of writing, Bitcoin is trading at $55,102.
The analyst’s comments reveal possible scenarios for Bitcoin and the crypto market. If the selling pressure is exhausted, the market could see either a strong recovery or a permanent trend change. In the long term, Bitcoin is likely to remain in a bull market.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
