Bitcoin falls back to $59k after bulls fail to sustain momentum

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

The flagship crypto fell to a low of $58,866, erasing almost all of the 3.2% gain recorded over the past day within an hour. As of press time, BTC was trading at $59,200 — roughly back where it started the brief rally earlier this week.

AI tokens worst-hit

Meanwhile, the wider crypto market experienced echoed the movements, with most suffering heavier losses than Bitcoin, which is still up 0.6% over the past 24 hours.

AI-focused cryptocurrencies led the market’s decline following a significant drop in Nvidia’s (NVDA) stock price, which fell 6.4% after the company reported its quarterly earnings. Tokens like Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) all experienced losses ranging from 7% to 10%

Large caps echoed Bitcoin’s movements, with Solana (SOL) and XRP recording the most significant losses for the day among the top 10. Ethereum (ETH) fell to $2,503 before bulls attempted a recovery, while SOL fell to a low of $138.5.

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

Uncertain markets

The pullback indicates continued challenges for Bitcoin bulls in pushing past key resistance levels, raising concerns about the broader market’s strength. The market’s trajectory has recorded lower highs and lower lows since March, highlighting ongoing uncertainty and volatility.

The price action suggests that the crypto market may be heading for further consolidation. Bitcoin’s quick recovery from its early August plunge below $50,000 appears to be losing steam, with the flagship crypto remaining in a downtrend since its March all-time high of $73,000.

The broader US stock market mirrored the crypto market’s movements, with the tech-heavy Nasdaq reversing earlier gains to trade 0.3% lower shortly before the close of trading. The index had been up more than 1.5% earlier in the day, reflecting similar investor uncertainty.

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