Bitcoin Rebounds to One-Month High; $68,000 Seen as Key Resistance

Bitcoin has rebounded to its highest level in more than a month, but whether the rally extends may depend on its ability to break through resistance at $68,000.

CoinDesk reported on July 21 that Bitcoin rose above $66,000, marking a rebound of about 15% from its early-July low. In its latest market report, Bitfinex said the $68,000 area is the key resistance zone that will determine whether the advance can continue.

The level is significant because it roughly matches the average purchase price of investors who bought Bitcoin over the past five months. Citing on-chain data provider Glassnode, Bitfinex said investors who were underwater may treat a return to breakeven as a chance to sell, creating overhead supply pressure. The $68,000 area also aligns with the previous peak in mid-June, when Bitcoin's rebound faltered before sliding below $58,000. Bitfinex said the market is likely to show a strong reaction the first time that resistance zone is retested.

Bitfinex also said it is seeing signs that market conditions are gradually improving. It cited a shift in US spot Bitcoin exchange-traded funds from persistent outflows to modest inflows. Even so, overall demand — including purchases by corporate Bitcoin treasury companies such as Strategy (STR) — remains well below levels seen earlier this year, meaning the recovery is not yet complete.

K33 Research expressed a similar view. Vetle Lunde, head of research at K33 Research, said institutional participation continues to decline, with open interest in Chicago Mercantile Exchange Bitcoin futures falling to its lowest level since 2023. Spot trading has also remained subdued. Bitcoin trading volume over the past 30 days was 62% of the annual average, while average daily spot volume over the past week was about $2.3 billion, near the lowest level of the year.

Lunde said the pattern reflects the crypto market's typical summer slowdown. ETF flows have stabilized after heavy redemptions in May and June, but buying interest has not yet returned in earnest.