Bitcoin updates monthly high: ETF inflows and short liquidations set a new direction
On July 21, the Bitcoin exchange rate reached $66,400, updating its price high for the past month. The last time the asset traded near these levels was on June 17. This surge was made possible by the fifth consecutive trading session with a net inflow of funds into US spot Bitcoin ETFs.
Technically, according to a trader under the pseudonym Jelle, the $65,000–$67,000 range represents a key resistance level formed back in the first quarter. If buyers can confidently consolidate above this zone, the direct path to testing the $70,000 level opens up.
The breakout of the local range triggered a massive wave of short position liquidations. Over the past 24 hours, positions worth $241.69 million were forcibly closed on the crypto market, of which $182.5 million were shorts. This is a classic short squeeze scenario, which amplifies the upward momentum.
On July 20, the net inflow into US spot Bitcoin ETFs amounted to $226.9 million — the best figure since July 6. Over five consecutive trading sessions, the total inflow reached approximately $727.3 million. This is the longest positive streak for the funds since the period of April 30 – May 5, when they recorded inflows for six consecutive days.
Against this backdrop, technical analyst Peter Brandt expressed the opinion that the current bearish cycle could end on October 4. However, he warns: before the final reversal, a panic capitulation is possible, capable of dropping Bitcoin below $50,000, down to the $40,000–$50,000 zone. Brandt emphasizes that the bottom is not formed on neutral sentiment, but on fear and large volumes, and the continued optimism of participants does not yet meet the conditions for full capitulation.
Interestingly, CryptoQuant data records a divergence in holder behavior: large whales are increasing their positions, while medium-sized wallets are actively selling. This is a classic sign of capital redistribution in favor of "smart money."
My comment: Bitcoin's current surge looks technically justified and is supported by a fundamental factor — institutional demand through ETFs. However, I would not rush into euphoria: the $65,000–$67,000 zone is a serious test for the bulls. If the market cannot consolidate above it, we risk seeing another false breakout and a return to consolidation. Keep an eye on ETF inflow volumes in the coming days — this will be the main indicator of the trend's sustainability.