The Bitcoin price falls below $64K as sellers regain control after the cryptocurrency failed to break through the key $65,000 resistance level.
Bitcoin was trading near $64,044 after falling about 1.6% to 1.8% over 24 hours. The decline came as traders reduced risk ahead of fresh US inflation data.
The latest move also followed a failed attempt to push above the $65,000 to $65,500 resistance zone.
Bitcoin faces strong resistance at $65K
Bitcoin briefly climbed to around $65,300. However, sellers quickly stepped in near the upper resistance area.
The rejection weakened bullish momentum. It also triggered automatic selling and forced some leveraged traders to close their positions.
As a result, Bitcoin moved back below $64,000. The drop shows that buyers still face a major challenge around $65,000.
For now, traders will be watching whether BTC can regain that level or fall towards lower support.
US CPI data adds market pressure
Another factor behind the Bitcoin price falls below $64K is caution ahead of the US Consumer Price Index report.
The inflation figures could influence expectations for future Federal Reserve interest-rate decisions.
If inflation comes in higher than expected, Treasury yields and the US dollar could rise. That could create additional pressure on risk-sensitive assets, including cryptocurrencies.
Therefore, some traders have reduced their exposure before the data release.
Rising oil prices add inflation concerns
Oil prices are also adding uncertainty to financial markets.
Growing tensions around the Middle East, including the Strait of Hormuz, have pushed energy prices higher. Higher oil prices can increase inflationary pressure across major economies.
That could make central banks more cautious about cutting interest rates.
For crypto investors, the prospect of higher rates can reduce demand for riskier assets. Consequently, Bitcoin may remain under pressure until markets have a clearer view of inflation and monetary policy.
Leveraged traders face liquidations
The latest decline has also exposed heavily leveraged Bitcoin positions.
Bitcoin’s move from around $65,300 towards $64,000 triggered liquidations among some long traders. Selling linked to margin calls can accelerate price declines during periods of weak liquidity.
The cryptocurrency briefly moved below the $64,000 level as additional selling emerged.
However, the broader market picture remains mixed. Some short-term traders appear to be reducing their exposure, while larger holders continue to show interest in buying Bitcoin during the dip.
What comes next for Bitcoin?
The immediate focus remains on the $65,000 resistance level and the upcoming US inflation data.
A sustained move above $65,000 could help restore bullish momentum. On the other hand, continued rejection could expose Bitcoin to further downside.
For now, the Bitcoin price falls below $64K highlight the market’s sensitivity to resistance levels, leverage, inflation expectations and wider geopolitical risks.
