Bitcoin briefly reclaimed the $65,000 level on Thursday, reaching an intraday high of $65,500 before retreating as softer-than-expected US inflation data boosted risk appetite, only for renewed geopolitical tensions to cap the advance.
According to CoinGecko, the leading cryptocurrency rose to its strongest level since June 22 before pulling back to trade around $64,500–$64,800 during Asian hours. The move followed the release of the June Producer Price Index (PPI), which fell 0.3% month-over-month, with annual producer inflation at 5.5%. The decline was driven by a 1.4% drop in final demand goods prices, even as final demand services rose 0.2%.
Just a day earlier, the Consumer Price Index (CPI) also surprised markets with a 0.4% decline in June, prompting traders to reassess expectations for Federal Reserve policy. Data from CME Group's FedWatch Tool showed markets have become less convinced the Fed will raise rates by 25 basis points at its September meeting.
Institutional demand added further support. Spot Bitcoin exchange-traded funds attracted more than $180 million in net inflows following the CPI release, reinforcing the move above the $64,000 resistance area. For context, Gold Bounces Back Above $4,070 as June PPI Miss Eases Rate Hike Fears similarly benefited from the inflation data.
Geopolitical Tensions Erase Part of the Rally
Bitcoin's advance lost momentum after Iran's Foreign Ministry stated the country has no plans to resume negotiations with the United States and remains focused on defense efforts. The statement contradicted comments from US President Donald Trump, who had said Iran wanted to reach a deal. Conflicting statements arrived as military operations continued, and Trump warned Washington could expand military action if Tehran refused to negotiate while maintaining the US blockade around the Strait of Hormuz.
Those developments pushed Bitcoin back below $65,000, interrupting the rally sparked by the favorable inflation reports.
Bitcoin Price Analysis
On the daily chart, Bitcoin continues trading above its 20-day EMA near $63,350, indicating buyers have maintained short-term control despite the latest pullback. However, the price remains below the 50-day EMA around $65,070, leaving that area as the first major resistance. Above it, the 100-day EMA near $68,390 and the 200-day EMA around $74,400 remain longer-term barriers.
The Volume Profile Visible Range (VPVR) shows one of the highest trading activity zones between $63,000 and $65,000, suggesting this area has become an important value region where buyers and sellers continue to compete.
The 4-hour chart presents a constructive picture. Bitcoin has formed a series of higher lows since early July, while the Relative Strength Index (RSI) sits near 56, indicating positive momentum without entering overbought territory. The Average True Range (ATR) has eased from June's elevated readings, pointing to lower volatility following the inflation-driven rally.
Liquidation data from CoinGlass shows another reason why Bitcoin has struggled to hold above $65,000. The largest concentration of leveraged short liquidations sits between $65,700 and $66,000. A sustained move into that zone could trigger forced short covering and accelerate a rally toward $67,200. Support remains clustered around $64,100–$64,300, where the heatmap shows a sizeable pool of leveraged positions. If that area fails, another concentration of liquidity around $63,600–$63,800 could become the next downside target, with the 20-day EMA offering additional technical support nearby.
The charts indicate Bitcoin remains in a consolidation phase after its inflation-driven rebound. A daily close above the 50-day EMA could strengthen the case for a move toward $67,200–$68,400, while a break below $64,100 would increase the likelihood of another test of the $63,300–$63,800 support region. For more on Bitcoin's recent price action, see Bitcoin Holds $62K Support: Is a Breakout to $64K Next?.
This article is for informational purposes only and does not constitute financial advice.
