Cryptocurrencies saw a rebound on Tuesday, as bitcoin (BTC) rose nearly 3% to approximately $58,000, easing concerns following last week’s decline. The recovery extended across the market, with the CoinDesk 20 Index, a key benchmark, gaining 2.4% over the past 24 hours. Leading the charge were notable increases in solana (SOL), filecoin (FIL), and the native tokens of Avalanche (AVAX) and Internet Computer Protocol (ICP).
“In a market update on Tuesday, Thielen pointed out that the $55,000-$56,000 range is establishing a support level based on technical analysis. However, he cautioned that despite this base formation, the medium-term technical outlook suggests only a short-term tactical rally could be expected.
Thielen further noted the potential for Bitcoin to rebound to nearly $60,000 before encountering resistance and possibly retracing to the low $50,000 range, contributing to a complex trading environment.
Adding to the challenges, senior analyst Vetle Lunde from K33 Research highlighted that bitcoin faces unfavorable seasonal trends, historically showing weaker returns in the third quarter. Lunde also mentioned external factors such as the sale of seized assets by the German state of Saxony and ongoing Mt. Gox refund distributions, which are exerting downward pressure on prices.
According to K33 Research’s projections, the market may need to absorb between 75,000 to 118,000 BTC throughout the summer, stemming from sales related to Saxony and Mt. Gox refunds. At current prices, this amounts to a significant value range of $4.3 billion to $6.8 billion.”
