The Bitcoin (BTC) market is currently displaying signs of seller dominance, according to Alex Kuptsikevich, senior market analyst at FxPro. Despite a swift recovery from the sub-$50,000 price seen last Monday, which restored bullish sentiment in the crypto market, Kuptsikevich predicts a potential fall of $5,000 from the current market rate of approximately $58,500.

Kuptsikevich's bearish outlook is based on Bitcoin's failure to maintain gains above $60,000 following a death cross, a bearish crossover of the 50- and 200-day simple moving averages (SMA). He notes that Bitcoin has not broken above the $60,000 threshold and faces selling pressure after attempting to surpass the 50- and 200-day moving averages late last week. This selling pressure indicates a resurgence of seller dominance in the market.

Additionally, Kuptsikevich points to the 14-day relative strength index (RSI), a momentum oscillator that measures the speed and change of price movements. He explains that oversold conditions no longer exist, as indicated by the recent RSI movement. This suggests that there is potential for another leg lower, aligning with the recent seller dominance above $60,000.

The 14-day RSI is a valuable tool for traders and investors to gauge momentum and potential trend reversals. When the RSI falls below 30, as observed after last Monday's crash, it indicates oversold conditions, often signaling a pause in the downtrend and a potential price recovery. However, Kuptsikevich notes that the RSI index on the daily timeframe has moved out of oversold territory, losing momentum for further strength.

The likelihood of short-term weakness in the Bitcoin price may increase if the U.S. July consumer price index data, scheduled for release on Wednesday, reveals persistently high inflation rates. This could potentially dash hopes for Federal Reserve rate cuts in the near future, further impacting the crypto market.

Recently, Bitcoin rebounded to levels above $60,000 late last week, retracing over 50% of the decline experienced between August 1 and August 5. However, since then, the recovery has stalled as pro-crypto Republican candidate Donald Trump loses ground to rival Kamala Harris in prediction markets tied to the outcome of the U.S. elections taking place on November 4.

As the Bitcoin market continues to evolve, traders and investors are closely monitoring various indicators and market developments to make informed decisions and navigate the volatile crypto landscape.