Bitcoin (BTC) lost momentum over the past day and slipped below $59,000 after bulls failed to push the price above the key $61,000 level, which had previously acted as support and resistance.

The leading cryptocurrency fell as low as $58,866, erasing almost all of its 3.2% daily gain in just an hour. As of press time, BTC is trading at $59,348 – almost back to where it started its brief rally earlier this week.

BTC 1-hour price chart | Source: TradingView

AI tokens hit hardest

Meanwhile, the broader crypto market has also seen a similar decline, with most coins suffering heavier losses than Bitcoin, although BTC is still up 0.6% over the past 24 hours.

AI-focused cryptocurrencies led the market lower after Nvidia (NVDA) shares fell 6.4% following the company’s quarterly earnings report. Tokens such as Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) all posted losses of between 7% and 10%.

Other large-cap coins also mirrored Bitcoin’s moves, with Solana (SOL) and XRP posting the biggest losses in the top 10. Ethereum (ETH) dropped to $2,503 before bulls attempted a recovery, while SOL dropped to a low of $138.5.

BNB also dropped to a low of $530, while Toncoin (TON) remains under pressure due to recent challenges related to network disruptions and the arrest of Telegram CEO Pavel Durov.

Market volatility

This correction shows continued challenges for Bitcoin bulls in overcoming key resistance levels, raising concerns about the strength of the overall market. The market trend has recorded lower highs and lower lows since March, highlighting the ongoing instability and volatility.

Price action suggests the crypto market may be headed for a further correction. Bitcoin’s rapid recovery from its early-August drop below $50,000 appears to be losing momentum, with the leading cryptocurrency remaining in a downtrend since its all-time high of $73,000 in March.

US stocks also gave up early gains, led by the tech-heavy Nasdaq, which fell 0.3% just 40 minutes before the session ended, after rising more than 1.5% earlier in the day.

According to anonymous crypto analyst Skew, in order to potentially generate a significant upside rally, bulls need to push the price above $61,000, which is located above key short-term moving averages on the 4-hour timeframe.

Current price action suggests that crypto markets may be in for another correction, as the rapid recovery from the sub-$50,000 drop in early August appears to be losing steam. The largest cryptocurrency has been stuck in a downtrend since hitting a record high of $73,000 in March, consistently making lower highs and lower lows since then.

Source: https://tapchibitcoin.io/bitcoin-tro-lai-59-000-khi-phe-bo-khong-vuot-qua-duoc-khang-cu.html