Analyst: Bitcoin’s rebound faces a key test at $68k, as the crypto market is in a “summer lull” phase

PANews July 22, according to The Block, after rebounding about 15% from Bitcoin’s July lows, it is now pressing toward the key resistance level of $68,000. Bitfinex analyst said that this level is close to the average cost basis of buyers over the past five months, and many investors who were previously in a loss may choose to sell when price first returns to their cost basis, creating sell pressure. In addition, the $68,000 area was also the previous high in mid-June; after the last rebound failed there, BTC fell below $58,000. The analyst expects the first test of this resistance level to trigger a strong reaction.

Bitfinex believes market conditions are gradually improving—U.S. spot Bitcoin ETFs have shifted from ongoing outflows to modest inflows, but demand has not yet fully recovered. Bitcoin’s share of spot trading volume has risen from about 50% a year ago to nearly 67%, indicating that investors still prefer Bitcoin over small-cap tokens, and market sentiment remains relatively defensive. K33 Research noted that CME Bitcoin futures open interest has fallen to the lowest level since 2023, 30-day spot trading volume is only 62% of the annual average, and late July is historically the weakest period of the year. K33 described the current situation as a “typical summer slowdown period.”