Bitcoin extended its July rebound to breach $66,600 for the first time in more than a month, marking a 15% climb from early July lows as traders test a critical resistance zone near $68,000.
The $68,000 level sits near the average purchase price of investors who accumulated bitcoin over the past five months. Traders sitting on losses may sell at breakeven, creating supply pressure. “The first retest of this resistance zone is expected to catalyze a sharp response,” Bitfinex analysts said.
The $68,000 zone also coincides with bitcoin’s mid-June high, where a previous rebound attempt failed before the asset tumbled below $58,000. Bitfinex described the market as “not yet healed” following that collapse.
ETF Flows Stabilize After Heavy Redemptions
U.S. spot bitcoin ETFs have shifted from persistent outflows to modest inflows. In June, roughly 90% of trading days recorded net outflows. July has shown improvement, with one-third of trading days posting net outflows so far.
Average daily spot volume over the past week reached $2.3 billion. Thirty-day trading volume stands at 62% of the annual average, typical for late July, historically the weakest period of the year.
Bitcoin’s Dominance in Crypto Markets Grows
Bitcoin currently accounts for 67% of spot crypto trading volume, up from 50% a year ago, signaling defensive positioning among traders. CME bitcoin futures open interest has fallen to its lowest level since 2023.
Summer Pattern Repeats
Vetle Lunde, Head of Research at K33 Research, characterized the current environment as “a classic summer pattern in crypto, and it is once again showing signs of repeating.” K33 Research described the period as “promising, and typical, summer slumber.”
