Bitcoin has staged a modest rebound after weeks of heavy selling, but analysts warn that the recovery may prove fragile as macroeconomic uncertainty and historical market cycles continue to cloud the cryptocurrency’s near-term outlook.

The world’s largest digital asset climbed more than 4 per cent over the weekend to trade around $68,800, recovering from recent lows as investor sentiment stabilised following a volatile stretch across global risk markets. The move, which added nearly $2,700 to Bitcoin’s price, offered some respite after a prolonged decline that has seen the cryptocurrency fall roughly 44 per cent from its October peak.

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Despite the rebound, trading…