Bitcoin surges to $66,400: ETF inflows and short liquidations set a bullish trend
On July 21, the market for the first cryptocurrency demonstrated a confident upward momentum: the BTC price reached the $66,400 mark, updating a monthly high. The last time the asset traded near these levels was on June 17, making the current breakout a significant event for short-term dynamics.
ETF Inflows: Fifth Consecutive Day in the Green
The key catalyst for the growth was U.S. spot Bitcoin ETFs. On July 20, net inflows into these instruments amounted to $226.9 million — the highest value since July 6. Over five consecutive trading sessions, the funds accumulated about $727.3 million. This positive streak is the longest since late April to early May, when ETFs recorded inflows for six days in a row. In my assessment, such sustained interest from institutional investors signals a shift in sentiment: the market is beginning to price in expectations of further rally.
Technical Picture and Liquidations
From a technical perspective, the breakout of the $65,000–$67,000 range, which according to trader Jelle had acted as resistance since the first quarter, opens the path to testing $70,000. Notably, the upward movement triggered massive 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 only amplifies the bullish momentum.
Expert Opinion: Is the Bear Cycle Not Yet Over?
However, not all analysts share the optimism. Technical analyst Peter Brandt believes that the current bear cycle will not end before October 4. He allows for a drop in BTC below $50,000, down to the $40,000–$50,000 zone, before a true bottom forms. According to him, "markets form bottoms not in neutral sentiment, but in panic and volume." The persistent optimism among participants, in his view, does not align with the conditions of final capitulation. Recall that Brandt previously predicted a rise to $250,000 by the end of 2029 after reaching a bottom in September-October.
My conclusion: The current surge is a classic example of how institutional inflows break local resistance. However, given the ongoing risks of macroeconomic uncertainty and warnings from market veterans, sharp corrections should not be ruled out. The nearest target is $70,000, but for sustained growth, consolidation above this level will be required.