Bitcoin slipped to around $63,327 on Tuesday amid cautious moves from investors ahead of the Federal Reserve’s upcoming interest rate announcement. The cryptocurrency fell roughly 2.5% during the session, breaking below a rising trendline that had supported its recovery since late June. Attempts to rally back stalled just under the $64,000 mark, signaling hesitation in the market.
Bitcoin Loses Key Support Levels
Analysis of the 4-hour chart reveals Bitcoin dipped below an ascending trendline that had sustained gains from the mid-$58,000s. The price also remained under the 4-hour Supertrend resistance at $65,198. Without closing above this level and reclaiming the trendline as new support, sellers retain the upper hand. The Chaikin Money Flow indicator registered a slight decline, pointing to ongoing but moderate selling pressure rather than a heavy sell-off.
Looking at the daily chart, Bitcoin sits below the 20-day moving average near $64,449 but holds just above the 50-day average around $63,343. This creates a narrow range where short-term resistance and essential support are converging, leaving the price compressed and primed for a decisive move.
Fed Policy Uncertainty Weighs on Market
The Federal Reserve’s two-day meeting, concluding with a decision Wednesday afternoon, has traders trimming risk exposure. Most expect the central bank to maintain rates between 3.50% and 3.75%, but futures markets assign about a 33% chance of a hike, injecting uncertainty into the outlook. This ambiguity contributes to the subdued trading mood, as investors seek to avoid surprises that could disrupt broader market conditions.
Adding to the selling pressure were $11.64 million in outflows from US spot Bitcoin ETFs on July 27 and leveraged liquidations that further drained buying momentum. Liquidity clusters around $64,500 and $62,500 are now critical levels to watch for short-term direction.
This content is for informational purposes and does not constitute financial advice.
