Bitcoin trades near key levels

The possibility of higher-for-longer U.S. borrowing costs has dampened enthusiasm for the cryptocurrency market, with bitcoin being the world’s biggest cryptocurrency.

A series of Federal Reserve officials have made it clear that they need to see more progress in taming inflation, even after last week’s weaker-than-expected U.S. inflation data, resulting in the U.S. central bank forecasting only one interest rate cut this year, compared to the prior forecast for three cuts.

At the same time, recent data, including Tuesday’s U.S. retail sales release, suggested that consumers are feeling the pinch of the elevated interest rates.

Activity is likely to be limited Wednesday, with the U.S. celebrating the Juneteenth holiday, but bitcoin could be trading near key levels that could determine the short-term trajectory of the largest crypto asset.

Bitcoin now exhibits the potential to rebound toward $67,000, according to the analytics platform Glassnode.

However, this level may create resistance, and overcoming it could set the digital currency on a path toward an even higher target of $69,500. On the flip side, the $65,000 mark is being watched as a crucial psychological support level, one that could play a pivotal role in maintaining investor confidence.

Bitcoin hit a record of $73,797.68 on March 14, and it last tested that level at the beginning of June.

63300 & 59800 is our support levels 👍🏻