Author: Krisztian Sandor, CoinDesk; Translated by: Baishui, Golden Finance

Cryptocurrencies rebounded on Tuesday, with Bitcoin (BTC) up nearly 3% to around $58,000 as concerns eased following last week’s crash.

The market benchmark CoinDesk 20 index is up 2.4% over the past 24 hours, with solana (SOL), filecoin (FIL) and the native tokens of Avalanche (AVAX) and Internet Computer Protocol (ICP) posting the biggest gains.

Bitcoin’s slow rise could continue for a while, possibly to $60,000, but the rally will be short-lived, according to 10x Research founder Markus Thielen.

"From a technical analysis perspective, the $55,000-56,000 range is forming a basis. However, given the medium-term technical damage, we do not expect a tactical bullish counter-trend rally in the near term," Thielen said in a market update on Tuesday.

“We expect Bitcoin could rebound to nearly $60,000 before falling again to the low $50,000s, creating a mixed trading environment,” he added.

Vetle Lunde, senior analyst at K33 Research, noted on Tuesday that seasonal trends also don’t help Bitcoin, with the third quarter posting historically weakest returns.

He added that seasonal weakness coincided with the sale of seized assets by the German state of Saxony and the ongoing distribution of Mt. Gox refunds, which weighed on prices.

According to estimates by K33 Research, the market would have had to absorb between 75,000 and 118,000 BTC sold from Saxony and Mt. Gox customers over the summer, worth $4.3 billion to $6.8 billion at current prices.

"We expect these inflows to weigh on results in the coming months and for market volatility to continue into October," Lunde said.