Bitcoin is testing the $63,150 Fibonacci support level after U.S. spot ETFs posted $265 million in net outflows, while bearish momentum readings and liquidation clusters point to further downside risk near $62,000. Traders are also watching stalled CLARITY Act negotiations in Washington for signs of relief.
Bitcoin briefly fell below $63,000 on Aug. 1 before trading at approximately $63,082, as sellers pushed the price toward a key technical support level. The asset has now erased most of its recovery from the July 21 high near $66,900.
Bitcoin tests key Fibonacci support
The daily chart places Bitcoin just below the 78.6% Fibonacci retracement level at $63,150, measured from the decline between the May peak of $82,492 and the June low of $57,884. A daily close below that level would confirm buyers failed to defend the retracement, opening the door to a retest of $62,000 and, if selling accelerates, the psychological $60,000 support. Bitcoin must recover above $64,000 before the immediate pressure begins to ease.
Momentum indicators turn bearish
Bitcoin's daily relative strength index has dropped to 45.12, below its moving average of 51.99, though it isn't yet oversold. The daily MACD has also crossed below its signal line, with the histogram sliding to −218.84. On the 4-hour chart, Bitcoin trades below the Bollinger Band midpoint at $63,886 and close to the lower band at $62,489, while Chaikin Money Flow has fallen to −0.22, indicating capital is leaving the asset near support.
ETF outflows and Washington uncertainty add pressure
US spot Bitcoin ETFs posted a combined $265 million in net outflows on July 31, according to SoSoValue data, ending a two-session inflow streak. BlackRock's iShares Bitcoin Trust led the withdrawals with $123 million, followed by Fidelity's FBTC with approximately $54.8 million. Total assets held by US spot Bitcoin ETFs stood at approximately $76.29 billion, equivalent to 6.04% of Bitcoin's market value.
Traders are also monitoring CLARITY Act negotiations in Washington, where the White House is expected to review a bipartisan ethics proposal as lawmakers seek support to advance the bill before the Senate's August recess. Polymarket traders placed the odds of the CLARITY Act becoming law in 2026 at just 27% on Aug. 1.
Liquidation clusters flank the price
Bitcoin's one-week liquidation heatmap shows large concentrations of leveraged positions on both sides of the current price, with the nearest downside cluster near $62,000 and a smaller concentration near $63,300. Above that, the strongest short-liquidation zones extend from approximately $65,000 to $66,000.
Reclaiming the 4-hour Bollinger midpoint near $63,886 would offer an initial recovery signal, and a move above $64,000 could open a path toward $65,000 and the upper Bollinger Band at $65,284. Analyst Ali Martinez identified a TD Sequential sell signal on Bitcoin's three-day chart, saying "Bitcoin is flashing a warning sign," though the pattern does not independently confirm a decline.
A sustained break below $62,000 would weaken the outlook and expose $60,000, followed by the June low near $57,884, while a recovery above $65,284 would shift attention back toward $67,284.
Source: crypto.news
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