Why Is Bitcoin Facing Challenges to Surpass $62K?

• Bitcoin fell to $58,710 today, erasing yesterday’s gains of $61,184 with a 4% drop.
• Optimism over potential interest rate cuts by the U.S. Federal Reserve had briefly boosted Bitcoin prices.

Bitcoin (BTC) displayed another drop today, falling to $58,710 after briefly rallying to $61,184 yesterday. This decline wiped out all gains over the last 12 hours, marking a 4% decrease. This drop, although notable, isn’t as severe as the decline seen on August 28, when BTC fell to $57,974—its largest drop since early August, when the price dipped to $49,844.

The bearish sentiment continues to dominate, with Bitcoin struggling to recover above $65K this month. The asset’s highest price in the past 24 hours was $61,184, but it has since slipped lower, showing a current downward trend. 

According to the analysts, this decline appears due to the recent sell-offs, macroeconomic uncertainties, and other market trends. Also, there’s caution in the market, with some analysts predicting that if BTC can’t overcome the current pressure, it might slide to $50,000. Additionally, the daily trading volume decreased by over 11% to $32.81 billion, as per CMC data. 

Can Bitcoin Overcome Recent Price Struggles?

Last week, Fed Chair Jerome Powell suggested that the central bank might lower interest rates soon, which generally boosts speculation and could potentially drive crypto prices higher. 

Despite recent optimism driven by the easing of U.S. monetary policy, the cryptocurrency struggles to hold above $61,000. Last weekend, Bitcoin briefly touched $64,500 amid speculation about potential interest rate cuts by the U.S. Federal Reserve. Then BTC failed to hold it and dropped below $60,000. 

Despite Bitcoin’s drop to $58,710, there’s still optimism. If Bitcoin can break through the $62,000 level, it might lead to further gains, potentially reaching $65,000 and $68,000.

On the daily chart, recent price action shows Bitcoin has been rejected at the 50-day and 200-day moving averages, $61.5K and $60.9K respectively. 

Further, the Relative Strength Index (RSI) has dropped below 50%, indicating a shift in momentum toward the bearish side. With the current market structure, further declines to $56,300 and even $54,000 are possible if Bitcoin cannot regain strength.