Bitcoin’s (BTC) efforts to rally once again faltered during Thursday’s U.S. trading session. After surging past the $61,000 mark earlier in the day, the price retreated, slipping below $59,000. Despite this setback, BTC managed to retain some of its gains from the last 24 hours, showing a modest increase of 0.6%, aligning with the broader market trend represented by the CoinDesk 20 Index.

In contrast, Ether (ETH) experienced a slight decline of 0.5%, struggling to stay just above the $2,500 threshold. The drop in ETH mirrored the overall weakness in artificial intelligence-focused cryptocurrencies. This segment of the market suffered notably due to a significant downturn in Nvidia (NVDA) shares, which fell by 6.4% following the company’s quarterly earnings report on Wednesday evening. As a result, native tokens such as Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) experienced substantial declines, ranging between 7% and 10% for the day.

The U.S. stock market also saw a reversal of fortunes. Early gains were erased as the trading session progressed, with the tech-heavy Nasdaq leading the decline. Approximately 40 minutes before the closing bell, the Nasdaq had dropped by 0.3%, having been up by more than 1.5% earlier in the day.

To sustain a meaningful upward trajectory, bulls needed to push Bitcoin’s price past the $61,000 mark, surpassing key short-term moving averages on the 4-hour chart. This would have improved the odds of rallying to the higher end of the current trading range, as noted by pseudonymous crypto analyst Skew.

The price action indicates that the cryptocurrency markets are poised for further consolidation. The rapid recovery from the sharp decline in early August, which saw prices plummet below $50,000, is losing momentum. Bitcoin has been trapped in a downtrend since reaching its all-time high of $73,000 in March, consistently making lower highs and lower lows.

As traders and investors navigate these turbulent waters, it becomes evident that the market may continue to experience fluctuations and periods of consolidation before establishing a clearer direction.