Bitcoin price (BTC) increased by almost 3% and reached $ 58,000, but experts point out that this rise will not last long and there may be a significant decline in the medium term.

This recovery in the overall market was broad-based. CoinDesk 20 Index gained 2.4% in the last 24 hours. The rise of popular altcoins such as Solana (SOL), Filecoin (FIL), Avalanche (AVAX) and Internet Computer Protocol (ICP) was effective in this rise.

However, the fundamental factors behind this rise make investors nervous. 10x Research founder Markus Thielen agrees that from a technical analysis perspective, the $55,000-$56,000 range provides a base. However, considering the medium-term technical damage, they expect a short-term tactical rise at most. Thielen predicts that Bitcoin could fall below $50,000 again after approaching $60,000 again, creating a complex trading environment.

One of the most important factors that can pull Bitcoin prices down is the sales pressure expected in the middle of the year. Research firm K33 Research predicts that the market will face $4 billion to $7 billion of Bitcoin selling pressure, which will push prices down. Two important events stand out as the source of this sales pressure:

Sale of Assets Seized by the German State of Saxony: The German state of Saxony has seized cryptocurrencies thought to have been obtained illegally in the past. Putting these seized assets up for sale would introduce a significant supply of Bitcoin into the market and could push the price down.

Mt. Gox Refunds to Continue: Mt. Gox was a Bitcoin exchange that went bankrupt after the major hacking incident in 2014. The company started to refund its users after a long legal process. These refunds may also create selling pressure by introducing additional Bitcoin supply to the market.

To further complicate the situation, K33 Research senior analyst Vetle Lunde emphasizes that the third quarter offered the lowest returns historically. This weak seasonality, combined with the aforementioned selling pressure, poses a significant downside risk to the Bitcoin price.

According to Lunde’s predictions, the market will continue throughout the summer in Saxony and Mt. Gox will face selling pressure of 75,000 to 118,000 BTC from its customers. These sales would be worth $4.3 billion to $6.8 billion at current prices. “We expect these sales to dampen performance in the coming months and for volatile market conditions to continue into October,” Lunde said. says.

Despite the recent rise, Bitcoin price may experience a significant decline in the medium term. It is important for investors to consider factors such as expected sales pressure in the middle of the year, weak seasonality and technical indicators and make investment decisions based on these factors. The cryptocurrency market, as always, presents an environment of high volatility and investors need to be cautious.