Bitcoin Needs to Break $61K for Market Sentiment to Shift, Say Traders
Bitcoin (BTC) reversed its recent gains, slipping to just above $59,000 during Wednesday’s Asian trading hours, as the cryptocurrency continues its sideways movement. BTC fell by 2.6%, leading losses among major tokens, with Solana’s SOL, BNB Chain’s BNB, and XRP each dropping by 2%, and Ethereum (ETH) declining over 3.5%.
For sentiment among market participants to shift, traders suggest that bitcoin must break above the $61,000 level and maintain that position. Selling pressure has been persistent near this level since early August. Alex Kuptsikevich, a senior market analyst at FxPro, noted that BTC has come close to testing its 50-day moving average, trading just below $61,000. A breakthrough could lead to a test of its 200-day moving average near $62.7K, potentially improving overall market sentiment and sparking more active buying.
Meanwhile, Tron’s TRX and Cardano’s ADA were among the few major tokens showing gains. ADA rose by 3%, while TRX surged over 10% due to increased network activity following the launch of a new memecoin generator supported by Tron founder Justin Sun. This generator, called Sunpump, allows users to create and list memecoins on a decentralized exchange once they reach a specific market capitalization.
In the broader market, stablecoin demand on the Tron network may be rising, with over $1 billion worth of Tether (USDT) tokens issued on Tuesday, likely to circulate within the ecosystem.
On the political front, Donald Trump has surpassed Kamala Harris as the leading candidate on Polymarket’s election winner contract, with odds now standing at 52-47 in his favor. Despite the widening gap, the race remains closely contested, especially in key swing states like North Carolina and Pennsylvania, where changing demographics are drawing significant attention from analysts.
However, these political developments are unlikely to have a significant impact on bitcoin’s price. Analysts continue to point to factors such as U.S. monetary policy and supply concerns as more influential on BTC’s market dynamics.
