Double Brake for Bitcoin at the $65,000 Threshold: Surge Seen as an Exit Opportunity

Despite positive US inflation data, long-term investors selling at a loss and short-term investors taking profits are causing the Bitcoin (BTC) price to stall at the $65,000 level.

The cryptocurrency market had a volatile week as Consumer and Producer Price Index data from the US came in below expectations. The price of Bitcoin (BTC) climbed from the $61,500 level to the $65,000 threshold as inflation cooled down. However, this rally faced intense selling pressure from two different investor groups and is struggling to provide a signal of a permanent recovery in the market.

According to Glassnode data, long-term holders (LTH) who purchased at last year’s peaks see the price increase as an exit opportunity. Fearing deeper declines, this group is opting to sell at a loss (capitulation). At the same time, short-term holders (STH) who bought at recent lows are performing profit realization at a rate exceeding $4 million daily. The simultaneous selling by these two groups creates a supply wall at the $65,000 level that is difficult to overcome.

$65,000 Resistance in Bitcoin Price and Geopolitical Risks

Market analysts argue that the decline in inflation data alone is not sufficient. Bitget chief analyst Ryan Lee states that the inflation decline in June was largely due to the drop in oil prices, but increasing geopolitical tensions in July could reverse this situation. Particularly, military activity in the Middle East and fluctuations in oil prices continue to suppress investors’ risk appetite.

Comments from the Wintermute side also emphasize that the market’s Fear and Greed Index is still in the “extreme fear” zone. While the decline of the Dollar Index (DXY) to the 100.48 level and the drop in bond yields are positive from a macro perspective, investor confidence in Bitcoin (BTC) has not yet been fully established. Data supporting the market analyses shows that investors evaluate the current surge not as a recovery, but as an escape opportunity.