Bitcoin lingered just above $64,600 on July 30, unable to push past the resistance zone around $66,500 after briefly dropping to about $62,383 following the Federal Reserve's latest policy announcement. The crypto asset recovered but remains stuck in a tight range, reflecting cautious investor sentiment amid several pressure points. The Federal Open Market Committee decided to keep interest rates steady at 3.5% 3.75%, though three officials signaled a preference for further hikes. This cautious stance, combined with escalating US-Iran military clashes, weighed on market enthusiasm.
Fighting intensified as US forces launched fresh strikes against targets linked to Iran’s Islamic Revolutionary Guard Corps, following missile launches aimed at a US base in Jordan. These hostilities have fueled worries about disruptions in critical Persian Gulf energy routes and shipping lanes through the Red Sea. Consequently, oil prices surged more than 6 percent, pushing crude above $84 a barrel. This spike sparked inflation concerns and triggered a risk-off mood among investors.
Despite a broad sell-off in US equities where the Dow fell 2.2%, the S&P 500 dropped 1.5%, and Nasdaq declined 1.7% Bitcoin showed resilience by reclaiming ground lost after the Fed announcement, flirting with its Bollinger Band midpoint near $64,512. Momentum indicators like the relative strength index hovered near neutral zones, suggesting the market is stabilized but not yet ready for a decisive breakout. Bitcoin's inability to clear the $65,000 to $66,500 ceiling highlights that current buying activity is defensive, preventing a steep drop but not fuelling a renewed rally.
