Bitcoin has updated its monthly high: ETF inflows and a technical breakout set a bullish trend
On July 21, the leading cryptocurrency confidently surpassed the $66,400 mark, updating a local high for the past month. The last time Bitcoin was at such levels was on June 17. This surge is not a coincidence, but the result of a combination of fundamental and technical factors that I, as an analyst, track daily.
The key growth driver was the fifth consecutive trading day with net inflows into U.S. spot Bitcoin ETFs. On July 20, the funds attracted $226.9 million — the highest figure since July 6. Over five sessions, total inflows reached $727.3 million. This streak is the longest since late April to early May, when ETFs recorded green days six times in a row. This is direct evidence of institutional demand outweighing short-term bearish sentiment.
Technical Analysis: Resistance Behind Us?
From a chart perspective, the $65,000–$67,000 range represented key resistance formed back in the first quarter. Trader under the pseudonym Jelle rightly noted that a breakout of this level opens the path to $70,000. Given how easily the price pierced this zone on the way down, it may not offer significant resistance now. I tend to agree: buying volumes and short liquidations confirm the strength of the move.
Over the past 24 hours, $241.69 million in positions were forcibly closed on the crypto market, of which $182.5 million were shorts. This is a classic short-squeeze scenario that amplifies the upward momentum.
Bearish Cycle or Temporary Correction?
Amid the optimism, it is worth heeding the voice of experienced contrarians. Technical analyst Peter Brandt predicts the end of the current bearish cycle only by October 4. He anticipates Bitcoin falling below $50,000 — down to the $40,000–$50,000 zone. According to him, markets form bottoms not on neutral sentiment, but on panic and volume. The persistent optimism, in his view, does not align with the conditions of final capitulation.
I would note that long-term prospects remain bullish — Brandt expects growth to $250,000 by the end of 2029. However, in the short term, volatility is possible. Interestingly, CryptoQuant data shows a divergence: large whales are increasing positions, while mid-sized wallets are moving to sell. This is a classic sign of capital redistribution ahead of a significant move.
My expert conclusion: The current breakout above $66,400 is technically strong and backed by institutional demand. However, a full breach of the $67,000 resistance and consolidation above will open the path to $70,000. Investors should monitor ETF inflow dynamics and whale behavior — these factors will be the triggers for the next surge or correction.