Bitcoin’s Bounce May Be Setting Up the Next SelloffBitcoin / U.S. dollarBITSTAMP:BTCUSDRober_PulseHello, I’m Rober. Bitcoin has just suffered a sharp rejection from the 65,200–65,400 area and quickly dropped toward 63,800. That move changed the short-term rhythm of the chart: buyers lost control near the highs, while sellers were able to break several intraday supports in one move. The current bounce around 64,000 therefore looks more like a recovery after heavy selling than a confirmed bullish reversal. The fundamental backdrop is also less friendly for risk assets. Bitcoin has come under pressure as renewed U.S.–Iran tensions and higher oil prices have reduced risk appetite. At the same time, markets are waiting for U.S. CPI on August 12 and PPI on August 13. A hotter inflation reading could push yields and Fed tightening expectations higher, which would generally create another headwind for Bitcoin. The Fed is currently holding rates at 3.50%–3.75%, so incoming inflation data remains important for the next policy move. The area I am watching is 64,600–64,800. It lines up with the 0.50–0.618 retracement of the latest selloff and could act as a natural zone for sellers to return. Rather than selling after an already sharp drop, I would prefer to see Bitcoin rebound into this area and then show clear rejection. If that happens, another move toward 63,500 becomes technically reasonable. If Bitcoin instead breaks above 64,800 and starts holding there, the bearish setup becomes much weaker. For me, the better trade is not to chase the first drop — wait for the market to bring price back into a level where sellers actually have something to defend. Wishing you successful trading!