Bitcoin Holds Above $64,000 but Gains Stay Capped as Middle East Strikes Resume

Bitcoin is stuck in a holding pattern Thursday, trading around $64,259 with neither bulls nor bears willing to make a decisive move. The Fed held rates at 3.50% to 3.75% on Wednesday as expected, but the press conference that followed kept pressure on risk assets. Three FOMC members pushed for a 25 basis point hike, and new chair Kevin Warsh was blunt about where the central bank’s head is at: 2% inflation is the only target and he intends to get there.

That kind of language keeps financial conditions tight, and tight conditions have a habit of sitting on bitcoin’s head.

The geopolitical backdrop is not helping either. US forces carried out a heavy wave of strikes on southern Iran overnight, hitting Bandar Abbas, Kish, and Qeshm Island. A US-owned vessel also caught fire at an Egyptian port in what looks like a drone attack, though local authorities have not confirmed the cause. Oil is holding above $82 a barrel and the Fear and Greed Index sits at 28, deep in fear territory.

The chart is equally uninspiring. Bitcoin is below both the 50-day EMA at $64,922 and the 100-day EMA at $67,521, with the 200-day EMA sitting way up at $73,060. Every one of those is a resistance level now, not support. The MACD histogram has been negative for days and the RSI is hovering around 50, which is about as neutral as it gets. No real momentum in either direction.

The SuperTrend line near $61,034 is the first meaningful floor if selling picks back up. Simon-Peter Massabni at XS.com said it plainly: bitcoin’s relative stability here is notable given everything happening around it, but geopolitical stress and a hawkish Fed both put a ceiling on how much liquidity can realistically flow into crypto heading into August.

Getting back above $64,922 is the first step. Until that happens, the path of least resistance points sideways at best.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

Ethereum Sits at $1,900 With the 100-Day EMA Just Overhead

58 mins ago

Save

Bitcoin Forecast: Hawkish Fed Risks $62.5K Breakdown & $60K Liquidation Wave

1 day ago

Save

Bitcoin Edges Back Toward $64,000 While Korea's Chip Sector Melts Down

1 day ago

Save