Bitcoin experienced a slight increase in investor sentiment at the start of the week, but there are three major factors preventing it from reaching the $30,000 level. These factors include a lack of trading volume in Ether futures exchange-traded funds (ETFs), concerns about an economic downturn from US Federal Reserve representatives, and diminished activity in leverage long positions. Macroeconomic forces, such as higher interest rates and a strong US dollar, are also putting downward pressure on Bitcoin’s price. Additionally, trading volumes and participation by institutional investors have decreased, possibly due to regulatory scrutiny. The approval of a spot Bitcoin ETF is also uncertain, as evidenced by lackluster demand for Ether futures-based ETFs and a discount in the Grayscale Bitcoin Trust. Overall, the short-term prospects for Bitcoin breaking above resistance levels are not favorable.
