Bitcoin, along with the rest of the cryptocurrency market, may trend higher following the liquidation of highly elevated leveraged positions before the halving, an analyst said Tuesday.

The week leading up to last Saturday's bitcoin halving saw a flush-out of a substantial amount of leveraged long positions, when bitcoin fell to a recent low below the $60,000 level.

Lower leverage conditions

However, according to a Standard Chartered Bank analyst note led by Geoffrey Kendrick, present market conditions are characterized by lower leverage, and this environment could potentially facilitate the appreciation of the bitcoin's price.

"We think the worst is over and a less leveraged digital assets market can now re-trend higher," Kendrick said.

The recent sell-off removed a significant …