Bitcoin Hits $66k, Races Towards Predicted Price on ETF Inflows
Bitcoin (BTC) price rose to $66k on Tuesday, outperforming a broadly rising market, driven primarily by renewed institutional exchange-traded fund (ETF) demand as macro fears ease.
A technical signal indicates BTC could climb to $68k or fall back below $64k amidst a significant surge in trading volume over the last 24 hours.
Data from crypto exchanges showed Bitcoin trading volume surged by 67% to $31.16 billion as analysts predicted momentum to build on sustained institutional positioning.
Market reports revealed that spot Bitcoin ETF inflows extended to a fifth consecutive day, adding approximately $227 million on July 20 alone, as soft inflation data reduced near-term Federal Reserve hike risks.
This reversal, after months of outflows, is tied to a softer June CPI report on July 14, which pushed market expectations for a July Fed rate hike down to just 6%.
This suggests institutions are rebuilding cautious positions, interpreting fading near-term hike risk as a green light for Bitcoin exposure. The sustainability of daily inflows, especially leading into the Fed decision.
Total derivatives open interest rose 10.56% to $417.69B, with the average funding rate turning positive. This shows leveraged traders are adding long bets, amplifying the spot-driven move.
Technically, Bitcoin broke and held above its 7-day simple moving average ($64,582), with the Relative Strength Index at 56.89 indicating healthy momentum. Market structure supports the uptrend, but high leverage increases volatility risk if sentiment shifts.
The immediate catalyst is the Federal Open Market Committee (FOMC) meeting on July 28–29. Markets overwhelmingly expect rates to hold.
If ETF inflows continue through this event and Bitcoin sustains above the $64,000 support, the next key resistance is the Fibonacci 61.8% retracement level near $66,800.
A hawkish surprise from Fed Chair Powell could quickly reverse flows, risking a drop to the 50% retracement support at $61,740. The bullish momentum is intact but fragile and dependent on macro policy signals.
Bitcoin recovered above its 50-day average of $63,700 and 100-day average of $63,100, trading around $64,600. The next major resistance is at $68,000, aligning with the 200-day moving average. The RSI above 54 suggests improving buying demand.
This is a neutral-to-bullish technical development for BTC because holding above these key support levels could justify a move toward the $68,000 resistance. However, a failure to break through would risk a pullback, delaying the recovery narrative. #Bitcoin Hits $66k, Races Towards Predicted Price on ETF Inflows#
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