BTC is aiming for $58,000 as an analyst predicts short squeezes in weak crypto markets.

On Tuesday, Bitcoin (BTC) started to show signs of improvement as the cryptocurrency market continued to rise after a sharp drop last week. In the last 24 hours, the price of the most popular digital currency rose 1.7%, getting close to $58,000. This is almost a 10% rise from Friday’s low, which shows that people are once again optimistic about the market.

During the same time period, both Ethereum (ETH) and Solana (SOL) saw gains, rising 1.5% each. Many other altcoins did the same, but Toncoin (TON), Artificial Superintelligence Alliance (FET), and Internet Computer (ICP) saw the biggest gains, rising between 5 and 8 percent. The success of 20 big digital assets is tracked by the CoinDesk 20 Index, which went up 1.3%. This shows that the market as a whole is doing well.

Market experts are cautious, even though the rebound is still going strong. A senior research analyst at Nansen named Aurelie Barthere said that the upcoming U.S. elections could make people less confident about the price of cryptocurrencies in the short run. Cryptocurrency isn’t likely to come up much in the debate between Trump and Harris, but the way each party views digital assets could have an effect on the future of the market.

There might be a big rise coming, according to a study from K33 Research. Analysts Vetle Lunde and David Zimmerman say that the 30-day average funding rates for permanent swaps have gone negative. This is a very rare event that has only happened six times since 2018. In the past, these conditions have coincided with market falls. This means that Bitcoin may see big gains in the next few months.

The study pointed out that Bitcoin’s average return over the next 90 days was 79%, with a median return of 55% in the past when funding rates were negative. Also, the amount of open interest in derivatives has hit its highest level since July. This is because short sellers are growing their holdings, which could lead to a short squeeze.

The K33 analysts came to the conclusion that “current market conditions create a compelling case for significant Bitcoin exposure in the months ahead.”