Bitcoin has reclaimed its position above the $62,000 mark, with analysts suggesting that the worst of the recent sell-off may be behind us. Following a period of heightened selling pressure influenced by German BTC liquidations and anticipated Mt. Gox payments, Bitcoin’s price appears to be stabilizing.

The leading cryptocurrency, denoted as BTC, has experienced a 5.2% increase over the past 24 hours, rebounding from a two-month low of $53,500 on July 4. As per TradingView data, Bitcoin is currently trading at $62,550.

Ben Simpson, founder of the crypto education platform Collective Shift, conveyed to Cointelegraph his belief that Bitcoin has established a “local bottom” and is now poised for an upward trajectory. He attributed the recent price downturn to a substantial wave of “forced selling,” predominantly driven by nearly $3 billion in sales by the German government and negative sentiment surrounding $8.5 billion in Mt. Gox creditor repayments.

On July 12, Bitcoin hovered around the $59,000 level, causing the Crypto Fear & Greed Index to plummet to an 18-month low. Simpson noted that this sharp decline in sentiment starkly contrasted with a more fundamentals-based perspective of the broader market.

“Generally, I just felt there was a very big mismatch between sentiment and fundamentals,” he remarked.

Looking ahead, Simpson identified several key factors that could propel Bitcoin’s price in the upcoming weeks and months. He highlighted Federal Reserve Chairman Jerome Powell’s hints at potentially lowering interest rates, the S&P 500’s surge to new highs, and substantial inflows into Bitcoin ETFs as bullish indicators.

According to Coinglass data cited by Apollo Sats founder Thomas Fahrer, over $360 million in leveraged short positions on Bitcoin were liquidated as the cryptocurrency surpassed the $62,000 threshold.

Similarly, eToro market analyst Josh Gilbert expressed optimism, suggesting that the worst of Bitcoin’s price decline may be over. He pointed to former President Trump’s increased election odds as a potential driver of positive price action, noting that a more pro-crypto political landscape could benefit Bitcoin.

“We’ve seen weakness in the last few months, but I think the worst is likely behind us. Any short-term weakness is likely to be bought with this in mind, alongside the tailwind of an ETH ETF and, of course, a more pro-crypto US party potentially being elected,” Gilbert stated.

Gilbert further noted that the closer Trump comes to regaining a position in the White House, the more likely Bitcoin’s price will rise due to his favorable stance on cryptocurrencies.

Gradual Market Recovery Expected

Gustavo Schwenkler, director of Australian crypto exchange Cointree, told Cointelegraph that the anticipated Mt. Gox creditor Bitcoin sell-off has already been “processed and priced in” by the market. Schwenkler identified lower-than-expected US inflation figures and the potential for interest rate cuts as strong catalysts for future market growth.

“Inflation came out lower than expected, and expectations that the Fed will start cutting rates got a boost. The market is now expecting first-rate cuts as soon as September,” he observed.

However, Schwenkler cautioned that a significant upward movement in Bitcoin’s price is unlikely to happen overnight. He predicts that BTC will fluctuate between $55,000 and $65,000 until the Federal Reserve implements actual rate cuts.

Mark Hiriart, head of sales at crypto asset manager Zerocap, emphasized that despite Bitcoin’s recent rally above $62,000, the cryptocurrency needs to convert the $60,000 resistance into solid support for sustained growth. He also mentioned the necessity for Bitcoin to reclaim its 50-day and 100-day simple moving averages before targeting higher levels of $65,000 and beyond.

Hiriart warned of potential market pressures due to Mt. Gox Bitcoin repayments, noting, “With Mt. Gox’s creditors sitting on a ten-year profit, it would be naive to think there won’t be any profit taking.” He added that the extent of market impact would depend on the distribution schedule and the percentage of recipients opting to cash out.

As the summer months unfold, Bitcoin investors and market observers remain watchful, anticipating how these evolving dynamics will shape the cryptocurrency’s trajectory.