reason why Bitcoin is struggling to rally above $28.5K

Bitcoin started the week with an uptick in investor sentiment, but there are three major factors preventing BTC price from recapturing the $30,000 level.

On Oct. 2, the price of Bitcoin BTC saw a 5.5% intraday increase to $28,600, but the largest cryptocurrency by market capitalization lost momentum as the highly anticipated launch of Ether ETH futures exchange-traded funds (ETFs) failed to generate significant trading volumes. 

While the recent rally into the upper end of the current price range was likely encouraging to investors, recent comments from United States Federal Reserve representatives reiterated concerns about an impending economic downturn.

Bitcoin demonstrated short-term strength by maintaining support at $27,200 on Oct. 3 and subsequently surged above $27,500 on Oct. 5. Nevertheless, three key trading metrics indicate a lackluster level of support. These metrics encompass spot market volumes, derivatives and confidence in the approval of a spot Bitcoin ETF.