The cryptocurrency market rebounded in the past few hours of trading, today, Wednesday, as Bitcoin rose by up to 3% to touch the $60,000 level again, amid fading fears after the price collapse that occurred last week.
The recovery was broad-based, with cryptocurrency market caps rising, led by gains in Solana, Filecoin, and Avalanche.
In this context, Marcus Thielen, founder of 10x Research, said that the rise may continue for a period of time, with Bitcoin likely to reach $60,000, but the rise will be short-lived.
“The $55,000 to $56,000 range for Bitcoin is a base from a technical analysis perspective,” Thielen added in a comment on the market’s movements over the past hours. “However, given the medium-term technical damage, we expect the upside to not continue in the short term.”
Analysts expect Bitcoin to rise again to near $60,000 before seeing another drop to the $50,000 range.
Strong selling pressure
On the other hand, Veit Lund, senior analyst at K33 Research, pointed out that seasonal trends are not helping Bitcoin either, with the third quarter historically recording weak gains.
He added that these weak seasonal gains coincide with the German state of Saxony selling digital assets confiscated from the collapsed cryptocurrency exchange Mt.Gox, which is affecting prices.
According to K33 estimates, the market will have to absorb between 75,000 and 118,000 bitcoins in sales from the German state 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 into October,” Lundy said.
