Bitcoin Gains Momentum Toward $60,000 – $65,000 or $50,000 Next? – The Global Tofay

Bitcoin Gains Momentum Toward $60,000 - $65,000 or $50,000 Next? - The Global Tofay Global Today
  • Bitcoin is regaining its posture in the market with the coin looking to reclaim the $60,000 price mark.
  • The BTC sale from Germany and the Mt.Gox scare remain crucial headwinds to watch.

Bitcoin (BTC) is currently finding a balance close to $60,000 after experiencing short-term fluctuations that led to a price decline to $53,761. Bitcoin’s recent uptick has raised discussions on whether a rise to $65,000 or a fall to $50,000 is next.

Analysts Opinions on Bitcoin Price Rally

As revealed in MarketCap’s data, BTC has increased by 1.5% in the last 24 hours, reaching a price of $58,541. The coin’s market capitalization soared by 1.6% to $1.1 trillion, while the trading volume dropped by 17% to $27 billion.

Bitcoin’s latest price rally reverberated across the entire market, with top cryptocurrencies like Binance coin (BNB) and XRP seeing price jumping by of 1.3% and 1.1% respectively, within 24 hours.

Markus Thielen, founder of 10x Research disclosed in a report that while the rally will be short, BTC could rise to $60,000. Thielen based his prediction on Bitcoin’s technical analysis which shows a price range of between $55,000 and $56,000 forming a base. Given the medium-term technical damage, the founder foresees only a short-term tactical bullish countertrend rally. He added that Bitcoin could fall to a lower range at $50,000 after climbing towards $60,000.

Vetle Lunde, a senior analyst at K33 Research added to the projection, stating that seasonal trends have contributed to BTC’s downward outlook. According to Lunde, the third quarter of 2024 has offered the lowest return for the digital asset. Lunde raised other issues including the ongoing distribution of Bitcoin by trustees of the now-defunct Mt.Gox exchange and the large token sell-off by German authorities.

As mentioned in our previous brief, the German government sold 282.74 BTC to the Bistamp exchange. Before this transaction, the government sold Bitcoin worth $55 million to Coinbase and Kraken exchanges as highlighted in our previous update. Note that these BTC were those seized from illegal activities. A government spokesperson said the government doesn’t hold onto cryptocurrency and sells them for euros upon conclusion of a related case.

As summarized in our earlier story, Mt.Gox transferred 137,890 BTC from its wallet to repay its creditors about $9.4 billion. This movement has increased the amount of BTC in circulation, leading to price declines for the cryptocurrency.

Timeline for Bitcoin’s Absorption of Increasing Supply

K33 Research estimated that it will take the market the whole of Summer to absorb 75,000  BTC ($4.3 billion) to 118,000 BTC ($6.8 billion) of sales from Saxony and Mt.Gox customers. 

“We expect these flows to burden performance in the months to come and the choppy market conditions to last until October,” Lunde noted.

On the contrary, Skybridge’s Anthony Scaramucci has predicted a $100,000 price target for Bitcoin by the end of 2024. Investors should note that this prediction is not cast in stone as the crypto market is volatile.

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