Bitcoin dropped 3% to $63,270 after failing to sustain a rally above $65,000, triggering $133.5 million in long liquidations. The rejection at a major supply zone between $64,800 and $65,000 leaves the $63,000 support level as the next critical test ahead of the Federal Reserve's rate decision on July 29.
Bitcoin fell 3% to $63,270 by 01:50 UTC on July 28 after failing to hold above $65,000, triggering $133.5 million in long liquidations across exchanges.
"The move above $65,000 was treated as a profit-taking opportunity ahead of the Fed, not the start of a sustained breakout," Ibrahim Cosart, a crypto analyst, said. "Managing risk will matter more than making directional bets heading into this 48-hour window."
Spot Bitcoin ETFs recorded $11.6 million in net outflows on July 27, according to CoinShares, as institutional demand failed to sustain Monday's relief rally. Total liquidations reached $156.8 million over the past 24 hours, with long positions accounting for $133.5 million, or 85%, of forced selling, Coinglass data shows. Bitcoin's market capitalization stood at $1.27 trillion, with a 24-hour trading range between $63,038 and $65,618, according to CoinGecko. The cryptocurrency is now trading below both its 20-day exponential moving average at $64,223 and its 50-day EMA at $64,916, with the 100-day EMA at $67,599 and the 200-day EMA at $73,306 remaining well overhead.
The Federal Reserve's rate decision on July 29 and the Personal Consumption Expenditures report on July 30 represent the next major catalysts. A breakdown below $63,000 could expose the $61,000 support zone, where the Binance reserve realized price has held since 2024, according to CryptoQuant analyst Joao Wedson. Conversely, a reclaim of $67,292 would open a path toward $73,000 to $77,000.
Bitcoin's daily chart has maintained a bearish swing structure since October, with the $67,292 swing high still unbreached. The $64,800 to $65,000 region has acted as a major supply zone, with repeated rejections reinforcing seller dominance at those levels, TradingView data shows. Funding rates have remained positive, and long volume in the derivatives market has slightly outnumbered short positions, indicating that leveraged bulls have not yet capitulated.
Whale accumulation from centralized exchanges has continued since June, and selling pressure from miners has declined, pointing to a bullish long-term outlook among large holders. However, the immediate price action remains driven by macro uncertainty rather than on-chain fundamentals. The US Dollar Index's strength and elevated Treasury yields have continued to weigh on risk assets, reducing the relative appeal of non-yielding assets such as Bitcoin.
The $63,500 level has accumulated significant long liquidation liquidity over the past two weeks, while $67,100 holds a comparable short liquidation cluster, Coinglass data shows. If the longer-term downtrend persists, Bitcoin may first climb to clear overhead short positions before resuming its decline toward the $61,000 and $57,800 demand zones.
This article is for informational purposes only and does not constitute investment advice.
