Bitcoin Rebounds Toward $60K, but Choppiness Likely to Persist: Analysts

Cryptocurrencies
rebounded
on
Tuesday
with
bitcoin

(BTC)
climbing
nearly
3%
to
around
$58,000
as
fears
after
last
week’s
breakdown
allayed.

The
recovery
was
broad-based,
with
the
market
benchmark

CoinDesk
20
Index
up
2.4%
over
the
past
24
hours,
led
by
gains
by
solana

(SOL),
filecoin

(FIL)
and
native
tokens
of
Avalanche

(AVAX)
and
Internet
Computer
Protocol

(ICP).

The
grind
higher
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-$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
said
in
a
Tuesday
market
update.

“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,”
he
added.

Seasonal
trends
are
not
helping
bitcoin
either,
with
the
third
quarter
historically
offering
the
weakest
returns,
Vetle
Lunde,
senior
analyst
at
K33
Research,
noted
Tuesday.

Weak
seasonality
coincides
with
the
German
state
of
Saxony
selling
seized
assets
and
the
ongoing
distribution
of
Mt.
Gox
refunds

weighing
on
prices,
he
added.

Read
more:



It’s
Not
Germany
Selling
Bitcoin.
It’s
One
of
Its
States
and
It
Has
No
Choice.

According
to
K33
Research’s
estimates,
the
market
will
have
to
absorb
75,000
to
118,000
BTC
of
selling
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
burden
performance
in
the
months
to
come
and
the
choppy
market
conditions
to
last
until
October,”
Lunde
said.