Bitcoin fell below $64,000 on Tuesday as traders reduced risk exposure before the Federal Reserve's interest-rate decision, with the cryptocurrency dropping 2.5% and briefly trading near $63,327 during the session. According to crypto.news, Bitcoin opened Tuesday near $63,706 and extended its decline toward $63,327 as traders cut exposure before the Fed decision. The cryptocurrency later traded around $63,858, leaving it down roughly 2.5% during the session. The 4-hour chart shows Bitcoin broke below an ascending trendline that had supported the recovery from its late-June low near $58,000, with price attempting to move back above the trendline but stalling below $64,000.
The Federal Reserve began its two-day meeting on July 28 and will announce its decision at 2 p.m. Eastern Time on Wednesday, with Chair Kevin Warsh's press conference following 30 minutes later. Markets broadly expect policymakers to keep the federal funds rate within the current 3.50% to 3.75% range, but futures pricing has assigned roughly a one-in-three probability to a rate increase, making the meeting less predictable than recent policy decisions. A Reuters report said the threshold for an immediate increase remains high despite inflation concerns and hawkish comments from some policymakers. A surprise increase could strengthen the US dollar and lift Treasury yields, creating another headwind for Bitcoin and other risk assets.
US spot Bitcoin ETFs posted $11.64 million in net outflows on July 27, marking a third consecutive session of withdrawals, according to SoSoValue data. BlackRock's IBIT led the daily withdrawals with $8.82 million, while Fidelity's FBTC lost $2.82 million. The funds still held combined net assets of about $78.71 billion, but the latest outflow showed weaker institutional demand before the Fed announcement. In contrast, spot Ether ETFs moved in the opposite direction, attracting $9.23 million led by an $11.75 million inflow into BlackRock's ETHA.
Bitcoin's technical outlook presents a mixed structure with the 4-hour chart showing Bitcoin broke below an ascending trendline that had supported the recovery from its late-June low near $58,000. The cryptocurrency remains under the 4-hour Supertrend resistance at $65,198 and below the 20-day moving average at $64,449, while trading slightly above the 50-day average near $63,343. The Chaikin Money Flow reading stood at minus 0.04, showing that capital flows had turned slightly negative, though the reading does not point to extreme distribution. The RSI slipped to 48.13, below its moving average at 53.58 and slightly under the neutral midpoint, leaving room for further losses if sellers break the 50-day average.
According to CoinGlass data cited by Delta Exchange, 165,529 traders were liquidated over the past 24 hours, with total liquidations reaching approximately $682.25 million in the crypto market. The three-day liquidation heatmap shows the nearest large concentration of leveraged positions between roughly $64,400 and $64,600, with additional liquidity sitting near $65,800 to $66,200. Below the market, the strongest nearby liquidity concentration appears around $62,500 to $62,600, with a break under the 50-day moving average at $63,343 potentially drawing price toward that cluster. The immediate support zone between $62,500 and $62,800 could encourage buyers to step in and support a short-term recovery.
