Bitcoin's Rally Fizzles Amid ETF Outflows and Fed Rate Expectations

Bitcoin's rally lost steam this week after briefly crossing $66,900. The cryptocurrency slipped to $64,466 on July 26, giving back most of its gains from earlier in the week. U.S. spot Bitcoin ETFs had recorded over $900 million in net inflows, led by BlackRock's IBIT and Fidelity's FBTC, but this momentum was short-lived as ETFs saw $225 million in net outflows on July 23.

Markets expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting, with a roughly 34% chance of a rate hike priced in. This week's price action has been characterized by declining volumes despite four consecutive weeks of trading in the green.

The weekly time frame shows Bitcoin made a low of $57,800 on July 1 but failed to sustain below the key support level of $60,000. To witness a sustained rally, it needs to break above, close above, and hold above its strong resistance zone between $70,000 and $75,000.