Bitcoin reached $66,400, its highest monthly price, driven by significant ETF inflows. Analysts predict potential further gains or a dip below $50,000.
On July 21, Bitcoin's value surged to $66,400, achieving a monthly peak. This rise coincided with a fifth consecutive day of net inflows into U.S. spot exchange-traded funds (ETFs) linked to Bitcoin.
The last time Bitcoin reached similar heights was on June 17. Trader Jelle noted that the $65,000–67,000 range is a significant resistance level established in the first quarter. He suggests that if Bitcoin surpasses this range, it could target $70,000.
"$BTC reclaimed the range lows and is now pushing higher - as expected. The area between 65 and 67k is resistance from the Q1 range, but it might not put up much of a fight this time. Eyes on those 70k range highs if so," tweeted Jelle.
The breakout from the local trading range was marked by substantial liquidations of short positions. Data from Coinglass indicates that $241.69 million in crypto positions were liquidated in the last 24 hours, with $182.5 million coming from short positions alone.
On July 20, U.S. spot Bitcoin ETFs saw net inflows of $226.9 million, the highest since early July. Over the past five trading days, these funds accumulated around $727.3 million, marking the longest inflow streak since early May.
In the week leading up to July 17, spot Bitcoin ETFs attracted $75.5 million, with BlackRock's IBIT ETF contributing $204.1 million to inflows, while Fidelity's FBTC saw the largest outflow at $181.1 million.
Technical analyst Peter Brandt has projected October 4 as a potential date for the end of the current bear cycle. However, he cautioned that accurately predicting market bottoms is extremely challenging. He anticipates Bitcoin might dip below $50,000, potentially falling into the $40,000–50,000 range before a recovery.
"Markets form bottoms not in neutral sentiment, but in panic and volume," Brandt remarked, emphasizing that current market optimism does not align with the conditions needed for a final capitulation.
In July, CryptoQuant contributor Amr Taha noted a contrasting trend among Bitcoin holders, with large investors accumulating while medium-sized wallets are selling off.
