Bitcoin climbs above $66,000 as traders watch $68,000 resistance

Bitcoin moved above $66,000 on Tuesday, reaching its strongest level in more than a month and putting a closely watched resistance zone back in play. For everyday crypto investors, the move matters because a break through nearby levels could force more leveraged traders to adjust positions, adding speed to price swings.

BTC/USD touched $66,306 on Bitstamp, according to TradingView data cited by Cointelegraph. That was the highest price since June 17. Bitcoin was recently quoted at $66,292.38, up 3.07%.

The move followed repeated failed attempts around $65,000, a level traders had been watching as resistance. Resistance is a price area where selling has previously been strong enough to slow or stop an advance.

Traders focus on the $68,000 area

Trader Jelle said on X that Bitcoin had regained the lower end of its prior trading range and was pushing higher. Jelle identified the $65,000 to $67,000 zone as resistance from the first-quarter range, while adding that the market could next look toward the $70,000 area if the zone gives way.

Trader Ted Pillows said on X that Bitcoin had reclaimed $65,000 and identified $67,500 to $68,000 as the next key resistance area. According to Ted Pillows, a move above $68,000 could open the door to another 5% to 6% gain in a short period.

Those comments are trader views, not confirmed outcomes. Bitcoin often moves quickly around round-number levels because leveraged traders, who borrow to increase exposure, may be forced to close trades when price moves against them.

CoinGlass data put total crypto liquidations over 24 hours at about $200 million. A liquidation happens when an exchange closes a leveraged position because the trader no longer has enough collateral to support it. When short sellers, traders betting on lower prices, are forced out, they buy back exposure, which can add upward pressure.

Still, not all traders saw the move as broad-based buying. The commentator Exitpump said on X that derivatives data suggested the rally was being driven mostly by short positions closing rather than new long positions entering. Exitpump pointed to declining open interest, a measure of outstanding derivatives contracts, and a bearish divergence in perpetual futures cumulative volume delta, a gauge traders use to compare buying and selling pressure.

Options market shows renewed risk appetite

QCP Capital, a trading firm and market maker, said in its Monday Market Colour note that there had been “some demand” for Bitcoin upside into month-end. In options markets, upside demand means traders are paying for contracts that benefit if Bitcoin rises.

QCP said that positioning left dealers “short upside gamma” into the July 28 to 29 Federal Open Market Committee meeting. Gamma measures how quickly an options dealer’s hedging needs can change as the underlying price moves. If dealers need to hedge rising prices, that can amplify a move higher.

The firm also linked the setup to macro risk, saying an accelerated move higher could become more likely if tensions around the Strait of Hormuz ease. Cointelegraph reported that QCP referred to the U.S.-Iran war again affecting the key global oil route.

The Federal Reserve’s rate decision is another market focus. CME Group’s FedWatch Tool showed an 83.4% probability that policymakers would keep the target range at 3.50% to 3.75% at the July 29 meeting, and a 53.8% probability of a move to 3.75% to 4.00% at the Sept. 16 meeting.

This story draws on original reporting from Cointelegraph.