Bitcoin prices fell below key support around $64,000, putting the market at risk of further decline toward the $60,000 level after a hawkish shift by the Federal Reserve wiped out gains from geopolitical detente.
Bitcoin prices fell from a high of $66,315 on June 17 to an intraday low of nearly $62,000 during early trading on June 18, a decline of 4%. Price action stabilized around $62,500, but momentum remains fragile as macro pressures increase.
The Federal Reserve kept interest rates unchanged at 3.50% to 3.75%, but signaled a tightening of policy through its latest forecast. Policymakers dialed back expectations for rate cuts, leaving open the possibility of further rate hikes. Chairman Kevin Warsh also signaled a shift from forward guidance, adding to uncertainty across financial markets.
This reaction triggered a widespread risk-off movement. The crypto market fell along with stocks linked to growth and liquidity, while the US dollar index rose to its highest in more than a year. Rising yields and a strong dollar tend to weigh on assets like Bitcoin, which rely on abundant liquidity.
This decline occurred despite supporting geopolitical developments. The United States and Iran have implemented an interim agreement that reopens the Strait of Hormuz and allows Iranian oil exports to resume. Oil prices fell toward $75 a barrel, a move that would normally support risky assets.
Bitcoin did not react, highlighting the dominance of monetary policy in shaping short-term sentiment.
According to Bitcoin Magazine Pro In addition to the data, attention is also focused on the upcoming June 26 Bitcoin options expiry, which has approximately $10.5 billion in open interest remaining. Call options are concentrated around the $80,000 strike price, and put demand is near $60,000. The current ‘max pain’ level is well above the spot price near $74,000, putting many bullish positions under pressure and increasing the likelihood of hedging flows.
Bitcoin price level
Bitcoin price momentum has cooled. The relative strength index is moving towards neutral territory, while the money flow indicators are showing a decline in buying pressure.
On the daily chart, Bitcoin price remains below key resistance levels, including the 61.8% Fibonacci retracement near $65,000 and broader trend resistance near $68,400. Trend indicators continue to favor sellers, reflecting a continuation of the downtrend that began after the May high.
Liquidity data highlights clear battleground levels. The downside of liquidity is concentrated around $63,500 and $62,000, but a significant chunk of liquidation interest lies above the price, around $65,000 to $67,000. These zones can act as magnets that attract prices as leverage increases.
Market participants are paying attention to whether the $62,000 level can be maintained. A sustained move below this range could pave the way for the price to drop below $60,000 and the June low of $60,000. In an extreme scenario based on past cycle movements, a deeper retracement remains possible if the macro environment tightens further.
Institutional flows present other challenges. The U.S.-listed Spot Bitcoin ETF has recorded outflows in recent trading, indicating reduced demand from large investors. At the same time, the Coinbase Premium Index remains negative, suggesting weak buying activity by US-based participants.
However, mixed signals exist beneath the surface. The accumulation of large Bitcoin holders is increasing, with wallets holding at least 1,000 BTC reaching their highest level since March.
Foreign exchange reserves are also decreasing, indicating that long-term holding behavior continues.
At the moment, Bitcoin price seems to be hovering in the $60,000 to $70,000 range as the market searches for direction. A return to $65,000 and then above $67,000 could regain bullish momentum and shift focus to $70,000.
However, as macro headwinds remain under control, downside risks will strengthen if current support cannot be sustained.
This article originally appeared in Bitcoin Magazine and was written by Micah Zimmerman.
