Bitcoin Momentum Stalls as $65,500 Resistance Level Fails for Third Time

Bitcoin's momentum has stalled after it failed to break through the $65,500 resistance level for the third time in hours. This rejection triggered a wave of liquidations estimated at $75 million, wiping out $45 million in short positions and $30 million in long positions within a 24-hour window.

The sudden drop in oil prices due to diplomatic easing offered temporary relief to risk assets, but this momentum quickly faded in the crypto market. Weak capital inflows observed in Bitcoin spot ETFs prevented a sustained rally, while ongoing political tensions regarding the final drafting of the CLARITY Act rekindled investor concerns about future sector regulation in the United States.

Strategy's decision not to reinvest its recent capital into direct bitcoin purchases removed a crucial buyer support to keep the price above resistance levels. The company increased its cash reserve by $525 million, extending its dividend coverage to 25 months, but chose not to immediately buy bitcoins.