Bitcoin has shown a remarkable comeback this week. After tumbling below $54k amidst fears of a larger crash that could push the leading crypto to $40k levels, it is now up by over 8% since hitting a monthly low of $53.05k on September 7.
While the bullish momentum this week has given some hope of a reversal within the crypto community, the overall sentiment remains bearish. At press time, Bitcoin was trading above the $58k mark but it faces strong immediate resistance at $59.3k – which it has failed to breach in the past two weeks.
Earlier, in August, Bitcoin price faced a sharp rejection after hitting $64k and has struggled since. Although it regained support at $57k, it has been making lower lows since August 26, when it reached a fortnightly high of $64.1k.
BTC prices have not dropped below $50k since August 8, but neither have the sporadic bullish uptrends helped Bitcoin break key resistance levels that could drive it to the $70k mark in the near term.
Each time Bitcoin has approached the $59.3k level, it has faced strong rejection.
$60k This Week Is Difficult For Bitcoin
Several other factors are also keeping Bitcoin from gaining momentum. The expectation of a Fed rate cut is high, especially after weaker-than-expected jobs data for August. However, it seems unlikely that rate cuts will happen soon, and even if announced, they may not meet market expectations, which could pull Bitcoin further down.
Additionally, with the U.S. presidential election in November, market uncertainty persists. We saw how Bitcoin and other leading cryptos reacted to the first presidential debate, after which Trump’s winning probability dropped by 3 points on Polymarket. Adding to this, major financial institutions are predicting an economic recession. The narrative was also echoed by Vice President Kamala Harris during the debate, when she stated, “If Donald Trump wins the election, his economic policy will push the U.S. economy into a recession by next year.”
Following the debate, Trump’s winning probability on Polymarket decreased by 5 points, and he is now trailing rival Kamala Harris by one point. Since Trump is viewed as a pro-crypto candidate, this could negatively impact the crypto market in the short term. Analysts have already predicted that if Harris wins the election, Bitcoin could drop to $40k in 2024. All things considered, breaching the $60k mark looks challenging for Bitcoin this week.
