Bitcoin is currently trading at $63,500, down nearly 6% from its highs over the past week. The pressure stems from investor caution ahead of the Federal Reserve’s (Fed) July 29 meeting, rising US Treasury yields, and lingering inflation uncertainty. Right now, the main risk for the crypto market is that the American central bank may keep its hawkish policy in place for longer than expected. If the regulator opts for a rate hike—driven by expensive oil and geopolitical tensions—liquidity in the financial world will tighten, which has historically been a negative signal for speculative assets. By contrast, a more dovish tone from the Fed could weigh on the dollar and reignite demand for Bitcoin.
Institutional interest also adds to the pressure. US spot BTC ETFs posted their third consecutive week of net inflows, but the total came to just around $34 million. On top of that, over the last two trading days of the week, more than $465 million was pulled from these funds—a clear sign that major players remain cautious. Adding to the headwinds, Strategy has refrained from making new purchases for the third week in a row. As the largest corporate holder of Bitcoin, the company’s reduced activity removes one of the key pillars of demand.
From a technical standpoint, prices failed to break through the $67,000 resistance level and have since turned lower, potentially aiming to reach support at $61,000.
The final recommendation:
— Sell Bitcoin at the current price of $63,500, targeting $61,000 within the coming weeks.
— Place a Stop Loss order at $67,000 to manage risks in case the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
