Bitcoin briefly climbed to a monthly high of $65,500 on Wednesday (July 15), raising hopes that the rally would continue. Just hours later, the price reversed toward the $64,000-$64,200 range. That peak turned out to be the exact level where sellers were waiting.
Since midnight UTC, Bitcoin dropped around 1.1% while Ether fell 1.7%. Altcoins followed suit: PUMP and ZEC each tumbled 4.4% after their strong Tuesday rallies faded.
A Rally Running Out of Fuel
Ironically, the initial trigger for the surge was positive news. According to crypto.news, BTC climbed to $65,470 after US inflation data - both CPI and PPI - came in lower than expected, reinforcing expectations that the Fed won’t need to tighten policy anytime soon. But that momentum quickly evaporated once sellers emerged at key resistance zones.
Glassnode data shows long-term holders used the rally to trim exposure - selling into strength rather than waiting for higher levels. Short-term traders and whales also locked in profits near resistance. Compounded by cooling spot Bitcoin ETF demand following several sessions of strong inflows, liquidity thinned out just as prices pulled back. Funding rates on offshore exchanges that had piled into long positions worsened the situation: once Bitcoin dropped below $64,400, automated liquidations accelerated selling pressure, briefly pushing prices to an intraday low of $63,900.
Shadow of War in the Middle East
An equally pressing headwind came from outside the crypto market. Middle East tensions flared up again - Iran launched strikes against US military bases across several Gulf nations on Thursday, and the US followed with a wave of retaliatory airstrikes. These tensions pushed oil prices higher and strengthened the US dollar, two signals that typically drive investors away from risk assets. Nasdaq 100 futures also dropped, extending a month-long downward trend.
Key Levels That Must Hold
From a technical standpoint, the outlook isn’t entirely bleak. The 4-hour chart shows Bitcoin still holding an ascending trendline that has supported every major pullback since early July, with the Aroon Up indicator holding above 64 and Aroon Down near zero - signaling that buyers remain in control of the intermediate trend. Analyst Ted Pillows emphasized that Bitcoin needs a daily close above $65,000 to trigger strong expansion; failure to do so could erase recent short-term gains. Trader Lennaert Snyder added that the rejection at $65,600 leaves substantial liquidity above current prices, but the $63,800 area must be defended first before any further upward push. Meanwhile, another supply overhang lingers: the distribution of over 140,000 BTC to Mt. Gox creditors, the timing of which remains uncertain.
Sourced from crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
