Bitcoin Faces Big Test After Four Week Winning Streak

Bitcoin just wrapped up its fourth consecutive weekly gain, but the positive momentum is showing clear signs of slowing down. The leading cryptocurrency hit a weekly high of $67,000 before sliding back down. Short term holders are selling as prices approach their breakeven cost basis, creating heavy resistance near the $68,500 mark.

Institutional interest has also cooled off significantly during this summer trading slowdown. CME Bitcoin futures dropped below $6 billion, and options activity hit its lowest point in a year. While US spot Bitcoin ETFs managed to pull in $33.9 million in net inflows for the week, they also suffered heavy outflows late in the week, showing that big buyers are still hesitant.

Broader economic factors are adding more caution to the market right now. Rising transport costs and sticky inflation risks are keeping pressure on the Federal Reserve, while the US 10 year real yield climbs closer to troubling levels for risk assets. Traders should watch the $63,000 to $68,500 range closely to see which direction breaks next.