Bitcoin
Bitcoin (BTC) Price Recovers Towards $60K, But Shakiness Likely to Persist: Crypto Analysts
Cryptocurrencies rebounded on Tuesday with bitcoin (BTC) rising nearly 3% to around $58,000 as fears following last week’s collapse eased.
The recovery was widespread, with the market benchmark index CoinDesk 20 Index up 2.4% in the past 24 hours, led by Solana gains (SUN)file currency (CHILDREN) and Avalanche native tokens (AVAX) and Internet Computer Protocol (PIC).
The rally could last 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 to $56,000 range is forming a base from a technical analysis perspective. However, given the medium-term technical damage, we do not anticipate more than a short-term tactical bullish countertrend rally,” Thielen said in a market update on Tuesday.
“We anticipate Bitcoin could recover to near $60,000 before experiencing another decline into 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 on Tuesday.
The weak seasonality coincides with the sale of seized assets by the German state of Saxony and the continued distribution of refunds from Mt. Gox weighing on priceshe added.
According to estimates from K33 Research, the market will have to absorb 75,000 to 118,000 BTC from Saxony and Mt. Gox customer sales over 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 choppy market conditions to last through October,” Lunde said.