Markets
Bitcoin (BTC) Price Rebounds Towards $60,000, But Volatility Likely to Persist: Crypto Analysts
Cryptocurrencies rebound Tuesday with bitcoin (BTC) climbing nearly 3% to around $58,000 as fears after last week’s plunge eased.
The recovery was widespread, the market benchmark CoinDesk 20 Index up 2.4% in the past 24 hours, led by gains in Solana (GROUND)filecoin (THREAD) and Avalanche’s native tokens (AVAX) and the Internet computer protocol (ICP).
The rally could last for a while, with BTC potentially reaching $60,000, but the rally will be short-lived, said Markus Thielen, founder of 10x Research.
“The $55,000-$56,000 range provides a base from a technical analysis perspective. However, given the medium-term technical damage, we do not anticipate more than a tactical bullish rally in the near term,” Thielen said in a market update Tuesday.
“We expect Bitcoin could rally to near $60,000 before seeing a further decline to the low $50,000 range, creating a complex trading environment,” he added.
Seasonal trends aren’t helping bitcoin either, with the third quarter historically offering the weakest returns, Vetle Lunde, senior analyst at K33 Research, noted Tuesday.
Low seasonality coincides with sale of assets seized by German state of Saxony and ongoing distribution of Mt. Gox reimbursements weighing on priceshe added.
According to K33 Research, the market will need to absorb 75,000 to 118,000 BTC in sales from Saxony and Mt. Gox customers throughout the summer, worth $4.3 billion to $6.8 billion at current prices.
“We expect these flows to weigh on performance in the coming months and for volatile market conditions to persist through October,” Lunde said.