Bitcoin Bounces Back Towards $60K, But Experts Predict More Volatility Ahead
Coindesk•1 week ago•

Bitcoin Bounces Back Towards $60K, But Experts Predict More Volatility Ahead



  • Bitcoin (BTC) rebounded on Tuesday, climbing nearly 3% to around $58,000.

  • The rally could potentially push BTC towards $60,000 but is expected to be short-lived.

  • Seasonal trends suggest weak returns for Bitcoin during the third quarter.

  • The sale of seized assets by Saxony and ongoing Mt. Gox refunds are expected to create $4.3 billion to $6.8 billion in selling pressure.

  • Experts anticipate choppy market conditions to persist until October.

Bitcoin Rebounds, but Choppy Waters Ahead

Bitcoin (BTC) climbed nearly 3% on Tuesday, reaching around $58,000, as fears from last week's decline subsided. The broader cryptocurrency market also saw a rebound, with the CoinDesk 20 Index up 2.4% over the past 24 hours.

While Bitcoin could potentially reach $60,000, experts warn that the rally will be short-lived. Markus Thielen, founder of 10x Research, believes the $55,000-$56,000 range is forming a base, but the technical damage suggests a short-term rally before another decline to the low $50,000 range.

Seasonal trends also paint a challenging picture for Bitcoin. Vetle Lunde, senior analyst at K33 Research, highlights the historically weak returns during the third quarter, citing the sale of seized assets by the German state of Saxony and ongoing Mt. Gox refund distributions as key factors.

K33 Research estimates that the market will have to absorb $4.3 billion to $6.8 billion worth of Bitcoin selling pressure from these sources throughout the summer. This selling pressure is expected to weigh on prices, creating choppy market conditions that could persist until October.

Overall, while Bitcoin's recent rebound is encouraging, experts believe that the market is likely to remain volatile in the coming months. The combination of seasonality, selling pressure, and technical challenges creates a complex trading environment for investors.