After Bitcoin surpassed $66,000, hitting its all-time high last month, analysts are closely watching key price levels. The $68,000 mark is seen as a critical resistance point, where selling pressure could emerge as investors who bought near this level may look to exit. This was highlighted by Bitfinex analysts, who noted that $68,000 coincides with the average cost basis for short-term holders and the opening price of the second quarter. They believe that a strong supply could appear during the first test of this level.
Spot Bitcoin ETFs in the United States saw net inflows of $203 million yesterday, marking the sixth consecutive day of positive flows. Since July 13, total net inflows have reached approximately $779 million. Spot Ethereum ETFs also saw inflows of $37.5 million on the same day, continuing a three-day positive streak. These flows suggest growing interest from investors, although institutional activity in the futures market remains low. Bitcoin open interest on the CME remained below 100,000 BTC throughout July, the lowest since October 2023. This implies that institutional participation has not yet fully recovered. According to Vetle Lunde, head of research at K33, Bitcoin trading volumes are also low on a seasonal basis, with 30-day spot volume representing only 62.4% of the annual average as of July 19.
Support and resistance levels
On the other hand, CapitalCom analyst Daniela Hathorn sees the $63,000 level as an important support point. She says that if Bitcoin stays above this figure and reclaims the $65,000-$66,000 range, the bullish momentum could strengthen. However, a break below $63,000 could trigger more profit-taking and add price pressure. The market is in a wait-and-see mode, with both bulls and bears monitoring these thresholds.
Market sentiment and outlook
Overall, recent price action has been largely driven by ETF inflows, but low trading volumes and weak institutional futures activity suggest the recovery may still be fragile. Analysts warn that the first test of $68,000 could be decisive. If Bitcoin breaks through, it could open the door to higher levels, but failure could lead to a retest of support around $63,000. For now, traders are watching these levels closely, as they could set the near-term direction. This is not investment advice, so always do your own research before making a decision.
