Bitcoin experienced an uptick in investor sentiment at the start of the week, but there are three major factors preventing it from recapturing the $30,000 level. These factors include macroeconomic forces exerting downward pressure on the price, diminished activity for leverage longs in Bitcoin trading metrics, and a drop in investors’ expectation for a spot Bitcoin ETF approval. The U.S. Federal Reserve’s concerns about an economic downturn, the increase in U.S. Treasury yields, and the attractiveness of the U.S. as an investment destination contribute to the downward pressure on Bitcoin’s price. Additionally, trading volumes and participation by institutional investors have decreased, and there is a lack of confidence in the approval of a spot Bitcoin ETF. As a result, Bitcoin has struggled to surpass the $28,500 resistance level, making it less likely to break above this resistance in the short term.
