Cryptocurrencies experienced a resurgence on Tuesday, with Bitcoin (BTC) rising almost 3% to approximately $58,000 as anxieties from the previous week’s downturn subsided. The recovery was widespread, with the CoinDesk 20 Index, a market benchmark, increasing by 2.4% in the past 24 hours. Significant gains were seen in Solana (SOL), Filecoin (FIL), Avalanche (AVAX), and Internet Computer Protocol (ICP) tokens.

Despite the upward momentum, the ascent may be temporary, with Bitcoin potentially reaching $60,000 but not sustaining the rally, according to Markus Thielen, founder of 10x Research. “The $55,000-$56,000 range is forming a base from a technical analysis perspective. However, given the medium-term technical damage, we anticipate no more than a short-term tactical bullish countertrend rally,” Thielen explained in a Tuesday market update.

“We foresee Bitcoin rallying back to nearly $60,000 before experiencing another decline to the low $50,000 range, creating a complex trading environment,” he added.

Seasonal trends are also unfavorable for Bitcoin, with the third quarter historically providing the weakest returns, noted Vetle Lunde, senior analyst at K33 Research. This weak seasonality coincides with the German state of Saxony liquidating seized assets and the ongoing distribution of Mt. Gox refunds, which are weighing on prices.

According to K33 Research’s estimates, the market will need to absorb between 75,000 to 118,000 BTC of selling pressure from Saxony and Mt. Gox customers throughout the summer, valued at $4.3 billion to $6.8 billion at current prices. “We expect these flows to burden performance in the coming months and the choppy market conditions to persist until October,” Lunde remarked.