Bitcoin (BTC) Price Reclaims $62K as Analysts Say the Worst of the Selling Could Be Over

The price of Bitcoin has reclaimed ground above the $62,000 mark, and analysts say the worst of the selling could be over with German BTC sales over and Mt.

Bitcoin (BTC) price action has shown signs of recovery this week, rallying back above the $62,000 mark as several analysts now believe the worst of the selling could be over.

With German BTC sales largely complete and Mt. Gox payments already factored in, several analysts now believe Bitcoin is poised for another leg up.

Bitcoin price recovers from 2-month lows

Bitcoin price has rallied 5.2% in the last 24 hours, bouncing off two-month lows of $53,500 on July 4 and is currently changing hands for $62,550, according to TradingView data.

BTC/USD 1-day price chart. Source: TradingView

After a turbulent first half of 2023 that saw BTC price drop from all-time highs of nearly $69,000, several analysts now believe that Bitcoin has found a local bottom and is preparing for another uptrend.

“I think we’ve found a local BTC bottom and are now heading into an uptrend. Feels like everyone’s been waiting for the other shoe to drop (German sales, Mt. Gox payments), but both are largely complete and the market has priced in the payments,” Ben Simpson, the founder of crypto education platform Collective Shift, told Cointelegraph.

Simpson’s analysis points to a massive oversupply of Bitcoin in the market that was being sold by several entities, including the German government, which sold nearly $3 billion in BTC over the last six months.

Additionally, the narrative surrounding the Mt. Gox creditor payments also played a role in the market downturn, with some suggesting that the recipients of the BTC would immediately sell their holdings, putting downward pressure on the price.

However, with both narratives largely played out and the price of Bitcoin showing signs of recovery, several analysts now believe that the worst of the selling could be over.

“The price of Bitcoin had been hammered by a deluge of forced selling — much of which stemmed from nearly $3 billion in sales from the German government and negative sentiment towards some $8.5 billion in Mt. Gox creditor repayments,” said Simpson.

“On July 12, when Bitcoin wavered around the $59,000 level, the Crypto Fear & Greed Index fell to its lowest level in 18 months, something that was at odds with a more fundamentals-based approach to the broader market environment.”

Bitcoin price driven by Trump, inflation fears

Moving forward, several catalysts could be bullish for Bitcoin’s price in the coming weeks and months.

According to Apollo sats founder Thomas Fahrer, just over $360 million in leveraged short positions on Bitcoin were liquidated as Bitcoin broke through the $62,000 mark, citing Coinglass data in a July 15 post to X.

“We can see that the majority of the unhedged short leverage was opened in the past 24 hours as Bitcoin price rallied by $3,000.”

Similarly, eToro market analyst Josh Gilbert told Cointelegraph that the worst of Bitcoin’s price may be in the rearview mirror, with Trump’s increased odds of clinching victory in the upcoming election being a key driver of positive price action in the coming months.

“The attack on former President Trump this week has positively impacted his reelection odds, with the former President’s pro-crypto stance lifting Bitcoin and crypto assets in the process,” said Gilbert.

“Both Trump and the Republicans have taken a more friendly stance on crypto than the Democrats. The closer we move to Trump potentially gaining his spot back in the White House, the higher we’re likely to see Bitcoin move.”

A Bitcoin pump won’t happen overnight

Gustavo Schwenkler, the director of Australian crypto exchange Cointree, told Cointelegraph that the narrative around Mt. Gox creditors dumping their Bitcoin on the market had already been “processed and priced in” as of last week.

“The Mt. Gox creditors narrative was largely processed and priced in last week. However, the lower-than-expected inflation figures in the US and the suggestion of lowered rates later this year could be a strong catalyst for crypto markets.”

According to Schwenkler, any potential upward swing in the price of Bitcoin would likely not occur overnight.

“We’ve seen a strong rally in Bitcoin price over the last 24 hours, but any potential pump in the price of Bitcoin will likely not happen overnight.”

Mark Hiriart, the head of sales at crypto asset manager Zerocap, argues that despite Bitcoin breaking $62,000, it would need to flip the $60,000 resistance into support, meaning that the price would need to hold steady above the $60,000 mark for some time.

Additionally, he

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