"The 200-day EMA held strong, and that’s what gave buyers the confidence to step in," said a crypto trader following Bitcoin's bounce from $62,850 to nearly $64,650 on July 29. The key moving average turned out to be a critical support level amid a recent sell-off across tech stocks and cryptocurrencies. As the Federal Reserve's interest rate decision loomed, Bitcoin showed resilience, shrugging off pressure that shook Asian tech shares deeply.
Bitcoin’s recovery was notable, especially considering the turmoil in markets like South Korea where SK Hynix plunged after missing earnings estimates, dragging down semiconductor and AI-linked equities. The Kospi index dropped 6%, and US chip stocks faltered too. Bitcoin had been closely tracking these AI-driven tech names throughout July, but its bounce during this tech sell-off suggests some short-term crypto selling pressure might be easing, even if one rebound doesn't confirm a full decoupling.
Traders are fixated on the $65,000 to $65,200 zone, reinforced by the 4-hour Supertrend indicator as the immediate hurdle. Over $2.5 billion in Bitcoin call spreads have been bought, betting on a move toward $72,000. Yet, a failure to hold $65,000 could expose Bitcoin to further dips toward $62,000 $62,500, especially as ETF outflows continue to sap spot demand.
The looming Federal Reserve decision adds uncertainty. While most expect rates to remain steady, swap markets imply about a 33% chance for a 25 basis point hike. Citadel Securities warns a rate increase is possible if inflation persists, which would likely boost the dollar and Treasury yields, creating a tougher environment for Bitcoin and other risk assets. This dynamic makes the Fed's announcement key for Bitcoin's path ahead.
This content is for informational purposes and does not constitute financial advice.
