Bitcoin Nears $63,500 as Traders Warn of Rough Monday Ahead

Bitcoin held steady near its highest levels in almost two weeks as the weekend came to a close, with traders watching closely for signs of what comes next. Price action centered around $62,700, a key long-term trend line marked by the 200-week moving average, according to Blockto data.

Short Sellers Get Squeezed as Price Climbs

The wave of short position liquidations as prices rose, with CoinGlass data showing $167 million in liquidations across the crypto market over 24 hours. He described the move as a classic short squeeze, where price grinds upward into a heavily shorted level until forced buying takes over. The key question now, he said, is whether $62,600, the weekly 200-day moving average, holds as support or whether the recent gains were simply clearing out liquidity before another drop.

Bitcoin ETFs Show Early Signs of Renewed Demand

U.S. spot Bitcoin ETFs snapped a six session streak of outflows, pulling in $224 million on Thursday, the first positive day in over a week following roughly $2.4 billion in prior redemptions. The shift came after last week’s U.S. jobs report came in weaker than expected, easing expectations for further Federal Reserve rate hikes. A 2% jump in gold prices around the same time, though it viewed that move as more of a safe haven hedge than a signal of stronger economic growth.

Fed Rate Decision in Focus

CME Group’s FedWatch tool currently shows close to an 80% chance the Federal Reserve holds interest rates steady at its July 29 meeting. Upcoming inflation data would need to support that dovish outlook for the market to gain more confidence heading into the decision.