CoinDesk
Bitcoin pushed above $66,600 on Tuesday, its highest level in more than a month and roughly 15% above the early July low, putting the $68,000 zone squarely in focus. Bitfinex analysts frame that level as the pivot for the entire rebound: it sits near the average purchase price of buyers who accumulated over the past five months and coincides with the mid-June high where the previous attempt rolled over into a drop below $58,000.
Bitfinex expects the first retest of the zone to catalyze a sharp response, with traders sitting on losses likely to treat a return to breakeven as an exit. Spot conditions have improved, with U.S. spot bitcoin ETFs shifting from persistent outflows to modest inflows, but Bitfinex warned demand has yet to fully recover. ETF flows and purchases by corporate treasury buyers such as Strategy remain well below levels seen earlier this year, and the report called the recovery "not yet healed."
Why it matters
Bitcoin now accounts for nearly 67% of spot crypto trading volume, up from roughly 50% a year ago, according to Bitfinex. The shift points to investors continuing to favour bitcoin over smaller tokens, a defensive posture rather than broad risk-taking. K33 Research's Vetle Lunde echoed the read, noting that institutional participation has continued to fade: CME bitcoin futures open interest has fallen to its lowest level since 2023, while offshore perpetual futures positioning has barely moved despite the recent price gains.
Spot trading activity has stayed slow. Thirty-day bitcoin trading volume is running at just 62% of its annual average, and average daily spot volume over the past week hovered near $2.3 billion, close to yearly lows even as prices recovered. Late July has historically been the weakest period of the year, and K33 framed the backdrop as a "promising, and typical, summer slumber."
Market impact
ETF flows have stabilised after heavy redemptions in May and June. Only about one-third of trading days this month have recorded net outflows, compared with roughly 90% in June, suggesting selling pressure is easing. Buyers, however, have yet to return in force, and activity remains muted.
Frequently asked questions
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Why is $68,000 a key resistance level for bitcoin?
Bitfinex analysts say $68,000 sits near the average purchase price of investors who bought bitcoin over the past five months and coincides with the mid-June high. Short-term holders returning to breakeven are likely to sell, creating overhead supply that could slow the rally.
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How much has bitcoin recovered from its July low?
Bitcoin climbed above $66,600 on Tuesday, its highest level in more than a month and roughly 15% above the early July low.
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What does 'summer slumber' mean for crypto markets?
K33 Research's Vetle Lunde used the term to describe subdued institutional participation, falling CME futures open interest, and 30-day spot volume running at just 62% of the annual average. Late July has historically been the weakest period of the year for crypto.
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Have bitcoin ETF flows turned positive?
ETF flows have stabilised after heavy redemptions in May and June. Only about one-third of trading days this month have recorded net outflows, compared with roughly 90% in June, but buyers have yet to return in force.
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Why is bitcoin's share of crypto trading volume rising?
Bitcoin now accounts for nearly 67% of spot crypto trading volume, up from roughly 50% a year ago. Bitfinex says the shift reflects investors favouring bitcoin over smaller tokens, a defensive posture rather than broad risk-taking.
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