Will Bitcoin face selling pressure, but rebound to $60,000 in the short term?

Will Bitcoin face selling pressure, but rebound to $60,000 in the short term?The cryptocurrency market has recently experienced significant volatility, with Bitcoin prices falling sharply over the past week, but bouncing back nearly 3% on Tuesday. However, some analysts have warned that the market may face selling pressure from multiple sources, putting further pressure on prices

Will Bitcoin face selling pressure, but rebound to $60,000 in the short term?

The cryptocurrency market has recently experienced significant volatility, with Bitcoin prices falling sharply over the past week, but bouncing back nearly 3% on Tuesday. However, some analysts have warned that the market may face selling pressure from multiple sources, putting further pressure on prices.

Vetle Lunde, an analyst at BOSS Wallet, points out that the third quarter is typically the period with the lowest Bitcoin returns, consistent with historical trends. Meanwhile, the upcoming sale of seized Bitcoin by the state of Saxony in Germany, as well as the ongoing distribution of Mt. Gox refunds, will also put pressure on the market in the coming months.

BOSS Wallet estimates that the market will have to absorb 75,000 to 118,000 Bitcoins from these two sources this summer, worth $4.3 billion to $6.8 billion at current prices. Lunde warns that these inflows will negatively impact market performance and could cause the market to remain volatile until October.

Despite potential selling pressure, some analysts remain optimistic about Bitcoin's short-term outlook. Markus Thielen, founder of 10x Research, says Bitcoin prices could continue to rise in the short term, potentially reaching $60,000.

Thielen believes that technical analysis shows a support range of $55,000-56,000, but that medium-term technical damage implies no tactical bullish reversal in the short term. He expects Bitcoin to fall back to the $50,000 low after rising to around $60,000, which will make the market environment more complex.

However, other analysts are more cautious. BOSS Wallet analysts say that while Bitcoin prices bounced back on Tuesday, the overall trend remains bearish as the EMA (Exponential Moving Average) trend indicator is still heading downwards.

They expect Bitcoin prices to struggle to break through the $60,000 resistance level and may consolidate for some time. They point out that MACD (Moving Average Convergence Divergence) is shrinking in volume, DIF and DEA (two components of MACD) are slowing down in downward expansion, KDJ (Stochastic Indicator) is forming a golden cross, but the golden cross at $57,500 came too early, resulting in a smaller upside.

Additionally, the Bollinger Bands are opening downwards, the daily candlestick has left the lower rail support at $55,000, and is starting to challenge the middle rail resistance level of $60,000. Given the overall bearish trend, they recommend that investors position themselves at key resistance levels rather than chasing rallies.

Ethereum faces similar pressure. Although there has been some rebound in the short term, the EMA trend indicator is still heading downwards, MACD is shrinking in volume, DIF and DEA are expanding downwards, KDJ is shrinking upwards, the Bollinger Bands are opening downwards, all of which indicate that the overall trend remains bearish.

Analysts expect Ethereum prices to continue to consolidate and experience some volatility in the short term. They point out that the four-hour candlestick has fought continuously against the EMA30 support point at 3060, MACD is falling in volume, DIF and DEA are diverging upwards, KDJ is stalled at 3115 resistance point and shrinking downwards, and the Bollinger Bands are showing continuous pressure on the upper rail at 3120, the middle rail has moved to 3015, and the lower rail support at 2900 remains unchanged.

In short, although Bitcoin and Ethereum prices have rebounded in the recent period, the market still faces selling pressure from multiple sources. Investors need to carefully observe market trends and make investment decisions based on technical indicators.

Here are some insights from analysts on future market trends:

• Bitcoin prices could continue to rise in the short term, potentially reaching $60,000.

• But the market is facing pressure from the sale of seized Bitcoin by the state of Saxony in Germany and the ongoing distribution of Mt. Gox refunds.

• Analysts expect Bitcoin prices to struggle to break through the $60,000 resistance level and may consolidate for some time.

• Ethereum prices are also facing pressure and may experience some volatility in the short term.

• Investors need to carefully observe market trends and make investment decisions based on technical indicators.

It should be noted that the above analysis is for reference only and does not constitute investment advice. Investors need to conduct independent research before making investment decisions, and choose appropriate investment strategies based on their own risk tolerance and investment goals.

Here is some relevant information about the cryptocurrency market:

• The cryptocurrency market is an emerging market with high volatility.

• Investing in cryptocurrency is risky, and investors may lose their entire investment.

• It is important to understand the basics of the cryptocurrency market and choose the right trading platform and wallet.

• Don't invest more than you can afford to lose.

Hopefully, the above content will help you better understand the cryptocurrency market.

Here is some additional related information:

• About Bitcoin:

• Bitcoin is a decentralized digital currency that operates using blockchain technology.

• Bitcoin is a currency with a limited supply, with a total of 21 million coins.

• Bitcoin's price fluctuates greatly and is influenced by factors such as supply and demand, regulatory policies, market sentiment, etc.

• About Ethereum:

• Ethereum is a decentralized platform that allows developers to build and run decentralized applications (DApps).

• Ethereum's native token is ETH, which is a digital currency used to pay network fees and execute smart contracts.

• Ethereum's value comes from the application potential of its platform and its leading position as a smart contract platform.

• About BOSS Wallet:

• BOSS Wallet is a multi-chain integrated digital currency wallet that provides a variety of features, including storage, trading, and DApp access.

• BOSS Wallet supports multiple cryptocurrencies, including Bitcoin, Ethereum, and USDT.

• BOSS Wallet is a secure and reliable digital currency wallet that can help users securely store and manage their crypto assets.

Finally, remember that investing in cryptocurrencies is a high-risk investment, and investors need to proceed with caution. Understanding risks, choosing the right investment strategy, and using secure trading platforms and wallets can minimize investment risks.