Bitcoin has retreated below $64,000 after the Federal Reserve's updated projections for further rate hikes in 2026 dampened risk appetite across financial markets. The cryptocurrency had briefly climbed above $66,000 earlier in the session, but the rally faded as investors reassessed the monetary policy outlook.
According to market data, Bitcoin reached an intraday high of $66,315 on June 17 before reversing course and sliding to around $63,800 during early trading on June 18. The move followed the Fed's decision to hold interest rates steady at 3.50%–3.75%, while its dot-plot indicated additional tightening later this year—a stance that prompted a broad pullback from risk assets.
Earlier in the day, sentiment had been lifted by reports that the United States and Iran signed a preliminary agreement aimed at stabilizing the Strait of Hormuz, easing concerns over global energy supplies. Oil prices fell sharply on the news, providing a tailwind for equities and cryptocurrencies. Bitcoin's push above $66,000 triggered more than $150 million in short liquidations, but the gains proved short-lived.
Following the Fed announcement, Treasury yields remained elevated near 4.16%, and investor confidence in near-term rate cuts waned. At the same time, institutional demand for Bitcoin showed signs of weakness. US-listed spot Bitcoin ETFs have recorded $2.1 billion in net outflows so far in June, while Coinbase has traded at a discount to international USDT-based exchanges for roughly five weeks—a pattern that suggests subdued buying interest from large investors.
Market participants have identified $64,000 as a key support level. Analyst WealthManager noted that a sustained move below that zone could reopen the path toward $60,000. The current technical structure reinforces this view: the daily relative strength index has fallen to around 37, remaining below the neutral 50 level, indicating that sellers retain the upper hand. Although the MACD has improved from deeply negative readings earlier this month, its positive histogram bars have started to contract, signaling that the recent recovery has lost momentum.
On the 24-hour liquidation heatmap, a large cluster of leveraged positions sits above the market, particularly between $65,000 and $67,000. These levels contain significant liquidation pools that could attract price if buying pressure returns. Near current levels, Bitcoin is sitting directly on top of a liquidity zone around $63,800 to $64,000. Beneath this area, liquidation concentrations become more visible near $63,000 and again between $61,500 and $62,000. Should sellers force a clean break below support, those levels could become the next downside targets.
Lower highs have continued to form since Bitcoin peaked near $82,000 in May, while the latest rally attempt failed before reclaiming major resistance. A move back above $65,000 and eventually $66,000 would place the large overhead liquidity clusters back into focus, but continued weakness below $64,000 could increase the risk of another leg lower toward the low-$60,000 range.
For broader context on the current market dynamics, see our analysis of Bitcoin Stalls Below $65K: Geopolitical Jitters, Weak Institutional Demand, and Strategy Concerns and the impact of weak ETF inflows on other assets like BNB Slips Below $600 as Weak ETF Inflows and Bearish Derivatives Pressure Mount.
This article is for informational purposes only and does not constitute financial advice.
