Bitcoin broke through $66,400: ETF inflows and short liquidations heat up the market
On July 21, the first cryptocurrency updated its monthly high, reaching the $66,400 mark. The asset last traded at this level on June 17. The rise is accompanied by a powerful inflow of capital into US spot bitcoin ETFs, which has been recorded for the fifth consecutive trading session.
ETF Inflows: Fifth Consecutive Session and a High Since July 6
The net inflow of funds into spot bitcoin ETFs on July 20 amounted to $226.9 million — the highest figure since July 6. Over five consecutive days, the funds attracted a total of about $727.3 million. Such a prolonged series of positive inflows was last observed between April 30 and May 5, when ETFs recorded inflows for six consecutive days. The main driver remains BlackRock's IBIT product, which attracted $204.1 million last week, offsetting the outflow from Fidelity's FBTC of $181.1 million.
Short Liquidations: $182.5 Million Evaporated in a Day
The breakout of the local range triggered a massive forced closure of short positions. Over the past 24 hours, the total volume of liquidations on the crypto market reached $241.69 million, of which $182.5 million came from shorts. This dynamic confirms that the market is moving against the bears, and the breakout of the $65,000–$67,000 resistance, formed in the first quarter, opens the path to the $70,000 level.
Technical Analysis: Eyeing $70,000
Well-known trader under the pseudonym Jelle notes that the $65,000–$67,000 zone was a key resistance formed in the first quarter. He believes that if bitcoin confidently breaks through this range, the next target will be the $70,000 mark. "Given how quickly the price passed through this zone on the way down, it may not offer serious resistance on the way up either," the analyst suggests.
Expert Opinion: Panic or Reversal?
Technical analyst Peter Brandt, commenting on the current situation, warns that the bear cycle may not end until October. He allows for a drop in bitcoin below $50,000 — down to $40,000–$50,000 — before a final bottom forms. "Markets form bottoms not under neutral sentiment, but on panic and volume," Brandt emphasizes. In his view, the current optimism of participants does not match typical capitulation conditions, and some investors should become disillusioned with the asset's prospects.
Expert Commentary from Cryptalist: The current dynamics are a classic example of a "spring compression": accumulation of positions by whales against the backdrop of weak sales from mid-tier holders and a powerful inflow into ETFs create prerequisites for a sharp upward move. However, I would not rule out a retest of the $60,000–$62,000 level, as the market often "cleans up" liquidity before a serious rally. Keep an eye on volumes — they will confirm whether bitcoin is ready to storm $70,000.