Bitcoin (BTC) rebounded by nearly 3% on Tuesday, reaching approximately $58,000, as concerns stemming from last week’s downturn eased.
The recovery extended across the board, with the CoinDesk 20 Index showing a 2.4% increase over the past 24 hours. Leading the gains were solana (SOL), filecoin (FIL), as well as the native tokens of Avalanche (AVAX) and Internet Computer Protocol (ICP).
Markus Thielen, founder of 10x Research, cautioned that while BTC might climb towards $60,000 in the short term, any rally could be brief. “The $55,000-$56,000 range is establishing a base, but given the technical damage in the medium term, we anticipate a tactical bullish counter-trend rally,” Thielen stated in a market update on Tuesday.
He further added, “Bitcoin could potentially rally back up to nearly $60,000 before facing another downturn towards the lower $50,000 range, creating a complex trading environment.”
Senior analyst Vetle Lunde from K33 Research highlighted seasonal factors contributing to bitcoin’s challenges, noting that historically, the third quarter tends to yield the weakest returns. Lunde also pointed out external pressures such as the sale of seized assets by the German state of Saxony and ongoing distributions of Mt. Gox refunds, which are weighing on prices.
K33 Research estimates suggest that the market will need to absorb between 75,000 to 118,000 BTC from Saxony and Mt. Gox customers throughout the summer, amounting to $4.3 billion to $6.8 billion at current prices.
“We anticipate these dynamics to impact performance in the coming months, maintaining choppy market conditions until October,” Lunde concluded.
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