Bitcoin Price Bounces Back Near $60K, Analysts Predict Continued Volatility
Cryptocurrencies saw a resurgence on Tuesday, with bitcoin (BTC) rising by almost 3% to approximately $58,000, alleviating concerns following last week’s decline.
The recovery was widespread, as the market benchmark CoinDesk 20 Index climbed 2.4% over the previous 24 hours. Leading the gains were solana (SOL), filecoin (FIL), and the native tokens of Avalanche (AVAX) and Internet Computer Protocol (ICP).
Markus Thielen, founder of 10x Research, predicted a potential climb for BTC to $60,000 but cautioned that any rally would likely be short-lived. He mentioned, “The $55,000-$56,000 range is forming a base from a technical analysis perspective. However, given the medium-term technical damage, we anticipate no more than a short-term tactical bullish countertrend rally.”
Thielen added, “We anticipate Bitcoin could rally back to nearly $60,000 before experiencing another decline to the low $50,000 range, creating a complex trading environment.”
Vetle Lunde, a senior analyst at K33 Research, highlighted that seasonal trends might not favor bitcoin, with historically weak returns in the third quarter. Lunde noted that this weak seasonality coincides with the German state of Saxony selling seized assets and the ongoing distribution of Mt. Gox refunds, which could impact prices.
According to K33 Research’s estimates, the market may need to absorb 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.
Lunde anticipated that these flows could affect performance in the upcoming months, leading to choppy market conditions likely to persist until October.
The article was edited by Nick Baker.
Krisztian Sandor, a reporter on the U.S. markets team focusing on stablecoins and institutional investment, contributes to this report. He holds BTC and ETH.
For more information, you can read about Market Wrap, Bitcoin, Mt. Gox, 10x Research, K33 Research, Vetle Lunde, and Markus Thielen.
