Analysts Say Bitcoin’s Rebound After Falling Below $60,000 May Be a Technical Bounce

Bitcoin rebounded after dropping below $60,000, but several market analysts said the move is more likely a technical recovery from oversold conditions rather than the start of a new bull market. According to Odaily, HEX Trust analysts said the market has entered an oversold state and Bitcoin could extend its rebound if U.S. inflation data cools and outflows from spot Bitcoin ETFs slow. They added that a true trend reversal depends on whether Bitcoin can regain the $79,000 to $80,000 range; until then, any rise should be viewed as a corrective rebound within a bear market. FxPro chief analyst Alex Kuptsikevich took a more optimistic view, saying that if Bitcoin rebounds to around $68,000, it could be considered an effective repair of the downtrend seen from May 11 to June 5. Data cited in the report showed that the 11 U.S. spot Bitcoin ETFs recorded cumulative net outflows of more than $5 billion over the past four weeks, including $91 million in outflows on Monday. Analysts said ETF fund flows remain one of the key factors influencing Bitcoin’s next move. Markets are also watching U.S. inflation data due on Wednesday. The report said that if inflation comes in below expectations, it may ease concerns about further Federal Reserve rate hikes and support risk assets such as Bitcoin. The market currently expects U.S. May inflation to remain above 4%, well above the Fed’s long-term 2% target.