Bitcoin fell sharply on June 18, approaching the $64,000 mark after the Federal Reserve’s hawkish stance reversed a temporary rally. The cryptocurrency had earlier climbed to $66,315 on June 17 but then plummeted to $64,103, wiping out gains from a brief optimism over easing Middle East tensions.
The Federal Reserve’s decision to maintain interest rates at 3.50%–3.75% was expected, but the surprise projection of further rate hikes in 2026 spooked investors. This news came shortly after reports of a preliminary U.S.-Iran deal had boosted risk assets, including Bitcoin. The earlier rally had resulted in over $150 million in short liquidations as BTC surged past $66,000.
On the institutional front, U.S. spot Bitcoin ETFs have seen continuous net outflows, weakening a major source of demand. Capital is flowing toward other high-growth sectors like AI equities and SpaceX, which are attracting significant institutional interest.
Technically, Bitcoin’s recovery stalled at the 78.6% Fibonacci retracement level near $64,230. The daily MACD is showing some recovery but remains weak, while the RSI sits below 40, indicating bearish momentum. The four-hour chart shows BTC testing an ascending trendline from the June 5 low, but it remains below the Supertrend resistance near $67,113.
Derivatives data reveals a large liquidity cluster between $64,500 and $65,000, where leveraged long positions had built up. The drop through this zone caused a cascade of liquidations, with further liquidity pockets near $64,000. Analyst Ardi warns that without strong spot volume, the current rally may fizzle similarly to the previous decline from $83,000, as perpetual futures activity rises but spot demand remains low.
If Bitcoin loses the $64,000 support, analysts expect a move toward $60,000, where another large liquidity cluster sits. A recovery above $66,000 could trigger short liquidations and bring the $68,000–$69,000 resistance into view, but the macro environment and ETF outflows continue to weigh on sentiment.