Bitcoin has surged back above the $62,000 mark, with analysts suggesting that the worst of the selling pressure may have passed following the conclusion of German BTC sales and the near completion of Mt. Gox payments. The cryptocurrency has rallied 5.2% in the past 24 hours, rebounding from its recent low of $53,500 on July 4, and is currently trading at around $62,550 according to TradingView data.
Ben Simpson, founder of the crypto education platform Collective Shift, expressed to Cointelegraph his belief that Bitcoin has established a “local bottom” and is poised for an uptrend.
Simpson attributed Bitcoin’s recent price pressures to significant “forced selling,” including nearly $3 billion in sales by the German government and concerns over approximately $8.5 billion in Mt. Gox creditor repayments.
On July 12, with Bitcoin hovering around $59,000, the Crypto Fear & Greed Index plummeted to its lowest point in 18 months, a contrast to Simpson’s view of broader market fundamentals.
“There seems to be a significant disconnect between sentiment and fundamentals,” Simpson remarked.
Looking ahead, Simpson identified several potential catalysts that could support Bitcoin’s price in the coming weeks and months.
“Jerome Powell has hinted at potential rate cuts in the near future. Additionally, we’re seeing the S&P 500 reaching new highs amidst all this, alongside strong inflows into Bitcoin ETFs.”
As Bitcoin surpassed the $62,000 mark, over $360 million in leveraged short positions on Bitcoin were liquidated, as reported by Coinglass data cited by Thomas Fahrer, founder of Apollo sats, in a July 15 update.
Josh Gilbert, market analyst at eToro, suggested to Cointelegraph that Bitcoin may have seen the worst of its price declines, attributing potential positive price movements in the coming months to increased odds of former President Trump winning the upcoming election.
“We’ve witnessed weakness in recent months, but I believe the worst is likely behind us. Any short-term dips are likely to be seen as buying opportunities, especially considering the potential tailwinds from an ETH ETF and the prospect of a more crypto-friendly U.S. administration.”
“The recent assassination attempt on former President Trump has boosted his reelection prospects, with his supportive stance on crypto lifting Bitcoin and other crypto assets,” Gilbert remarked.
He also highlighted that Trump and Republicans generally hold a more favorable stance towards cryptocurrencies compared to Democrats.
“As we approach the possibility of Trump returning to the White House, we could see further upward momentum in Bitcoin,” he concluded.
A surge in Bitcoin’s price won’t occur suddenly
Gustavo Schwenkler, director of Australian crypto exchange Cointree, told Cointelegraph that the market has already “processed and priced in” the narrative surrounding Mt. Gox creditors dumping their Bitcoin last week.
Schwenkler views lower-than-expected inflation figures in the US and indications of potential rate cuts as significant catalysts for the future movement of crypto markets.
Mark Hiriart, head of sales at crypto asset manager Zerocap, emphasizes that despite Bitcoin surpassing $62,000, it must establish $60,000 as a stable support level, implying sustained trading above this threshold.
He also highlights the importance of Bitcoin reclaiming its crucial 50-day and 100-day simple moving averages before progressing towards $65,000 and beyond.
Regarding potential challenges, Hiriart mentions the impact of Mt. Gox Bitcoin repayments, noting that creditors holding Bitcoin for a decade might opt for profit-taking.
He anticipates ongoing market pressure throughout the summer, contingent on the distribution timing and recipients’ disposition to cash in on their holdings.