Bitcoin slipped below $65,000 on Tuesday as rising oil prices renewed concerns about inflation ahead of the latest US consumer price data. XRP and ether led losses among major cryptocurrencies, while traders continued to watch $70,000 as Bitcoin's next major upside target.
Bitcoin briefly climbed above $65,300 over the past 24 hours but failed to maintain the level for a fourth consecutive day. BTC later declined toward $64,000, leaving the cryptocurrency only marginally higher over the past week.
The latest pullback comes as global markets prepare for Wednesday's US inflation report, with higher crude oil prices increasing concerns that inflation could remain elevated.
Bitcoin Struggles to Hold $65,000
Bitcoin has repeatedly tested the $65,000 level but has yet to establish a sustained move above it.
The repeated attempts are becoming an important short-term signal for traders.
Alex Kuptsikevich, chief market analyst at FxPro, said Bitcoin's inability to break higher has occurred without a major wave of selling. Instead, the price action could indicate that traders are building short positions above the current market.
If Bitcoin eventually breaks through $65,000 with strong buying pressure, those short positions could become a source of additional upward momentum.
The next major psychological level would then be $70,000.
Why $70,000 Matters for Bitcoin
A move toward $70,000 would put Bitcoin closer to another important technical resistance zone.
The 200-day moving average is also positioned near that area, making the level particularly important for traders monitoring Bitcoin's medium-term trend.
A sustained move above $70,000 could significantly improve market sentiment.
It would also place Bitcoin above the broader trading range where buyers and sellers previously battled during March and April.
However, BTC still needs to overcome $65,000 first.
Until that happens, traders may continue to treat the current move as a range-bound recovery rather than the beginning of a larger breakout.
XRP and Ether Lead Crypto Losses
Bitcoin's weakness was accompanied by broader declines across major cryptocurrencies.
Ether (ETH) was among the weakest major assets, falling more than 2% toward $1,878. Despite the daily decline, ETH remained slightly higher over the previous seven days.
XRP also fell almost 2% to around $1.01 and was down nearly 6% over the week, making it the weakest major cryptocurrency over that period.
Solana declined less than 1% to around $76 but remained the strongest major performer over seven days, with gains of roughly 3%.
BNB slipped toward $600 while retaining a weekly gain of about 2%.
Some cryptocurrencies moved against the broader trend. Hyperliquid's HYPE gained nearly 2%, while Tron edged higher and Dogecoin remained around $0.07.
Crypto Sentiment Remains in Fear
The broader crypto market is not showing strong risk appetite.
The crypto sentiment index remains around 30, placing market sentiment in the fear zone.
The index has remained in this territory since mid-July, with occasional moves toward extreme fear.
Persistent fear can limit speculative buying, particularly when Bitcoin approaches major resistance levels.
However, it can also create conditions for a stronger rally if Bitcoin breaks higher and traders who positioned for further declines are forced to cover their positions.
Oil Prices Renew Inflation Concerns
The latest Bitcoin weakness is also linked to developments in traditional markets.
Brent crude remained near $87.73 per barrel after rising roughly 5% in the previous session.
The oil rally has increased concerns about the impact of higher energy costs on inflation.
That matters for Bitcoin because inflation data can influence expectations for Federal Reserve monetary policy.
If inflation remains stubbornly high, markets could reduce expectations for easier monetary policy, potentially putting pressure on risk assets.
US CPI Becomes the Next Major Catalyst
The next major market event is the release of the US Consumer Price Index (CPI)
The inflation report is scheduled for Wednesday morning in the United States.
Traders will be watching both headline and underlying inflation measures for clues about the Federal Reserve's next policy decision.
A softer-than-expected CPI reading could support Bitcoin by strengthening expectations that interest rates will remain stable or eventually move lower.
A hotter inflation reading could have the opposite effect by increasing concerns about higher rates.
Investors can monitor changing Federal Reserve rate expectations through the CME FedWatch Tool.
US Bitcoin ETF Flows Remain Important
Institutional demand has provided an important source of support for Bitcoin in recent weeks. Traders can track the latest Bitcoin ETF flows and holdingsUS spot Bitcoin ETFs recorded approximately $865 million in net inflows across five trading sessions through August 7, according to the latest market data.
However, preliminary figures showed around $91 million in outflows on Monday, suggesting that institutional demand may have temporarily weakened.
ETF flows will remain an important indicator for traders because sustained inflows can provide additional spot-market demand.
A return to strong inflows alongside a break above $65,000 could strengthen the bullish case for Bitcoin.
Bitcoin's Next Move Depends on $65,000
The current market is approaching an important decision point.
Bitcoin has repeatedly tested $65,000 but has not yet managed to turn the level into reliable support.
A decisive breakout could open the way toward $70,000, particularly if short sellers begin covering positions and ETF inflows return.
On the other hand, another rejection could keep Bitcoin trapped below resistance and leave the cryptocurrency vulnerable to another move toward lower support levels.
The combination of oil prices, US inflation expectations, ETF flows and market sentiment will likely determine which scenario develops.
Bitcoin Market Outlook
Bitcoin remains in a delicate position.
The cryptocurrency is holding above recent lows, but repeated failures around $65,000 show that buyers have not yet established control.
At the same time, the lack of aggressive selling could suggest that traders are positioning for a larger move.
The $65,000 level is the immediate hurdle, while $70,000 represents the next major upside target if Bitcoin successfully breaks higher.
For now, traders are waiting for the US CPI report for the next major catalyst.
Conclusion
Bitcoin fell back toward $64,000 after another unsuccessful attempt to hold above $65,000, while XRP and ether led losses among major cryptocurrencies.
Rising oil prices have increased inflation concerns ahead of the US CPI release, creating another source of uncertainty for risk assets.
Despite the weakness, Bitcoin's next major target remains $70,000 if bulls can first establish a sustained breakout above $65,000.
ETF flows, inflation data and market sentiment will be key indicators to watch as Bitcoin approaches this important technical decision point.
