Bitcoin Climbs Above $66,000 for First Time in Over a Month as Bulls Eye Further Gains

Bitcoin rose above $66,000 on Tuesday, reaching its highest level in more than a month as renewed bullish momentum pushed the cryptocurrency to an intraday high of $66,306 on Bitstamp, according to TradingView data. The move marked Bitcoin's strongest price since June 17, following several failed attempts by sellers to push the asset below the $65,000 level.

The rebound has strengthened expectations that Bitcoin could challenge the $67,000 to $68,000 resistance zone, with some market participants eyeing a potential return toward the psychologically significant $70,000 level.

Technical Momentum Improves

Crypto trader Jelle said Bitcoin has successfully reclaimed recent lows and is now following the bullish trajectory he had anticipated.

In a post on X, he noted that the $65,000 to $67,000 range had previously acted as a key resistance area during the first quarter. However, because that zone was broken relatively quickly during the previous decline, he believes it may offer weaker resistance this time, potentially allowing Bitcoin to retest the upper end of its recent trading range.

Fellow market analyst Ted Pillows also pointed to Bitcoin's recovery above $65,000, arguing that the next major technical hurdle lies between $67,500 and $68,000, leaving room for additional upside if buying momentum continues.

Short Liquidations Fuel Rally

Bitcoin's latest advance coincided with a wave of short liquidations across the cryptocurrency derivatives market.

According to CoinGlass, approximately $200 million worth of leveraged crypto positions were liquidated over the past 24 hours, with short sellers accounting for a significant share of the total.

Despite the strong price move, some analysts cautioned that the rally may not yet reflect robust spot market demand.

Market analyst Exitpump suggested that much of the recent momentum has been driven by traders closing bearish positions rather than fresh buying activity, adding that genuine spot demand remains relatively limited.

Options Market Signals Bullish Expectations

The derivatives market is also showing increased optimism heading into the end of July.

Trading firm QCP Capital said in its latest Market Colour report that demand for bullish Bitcoin options has picked up ahead of month-end. The firm noted that stronger interest in upside exposure has created opportunities for some traders to sell higher-priced gamma before the upcoming Federal Open Market Committee (FOMC) meeting scheduled for July 28-29.

QCP added that easing geopolitical tensions around the Strait of Hormuz could further support risk appetite and contribute to stronger price action in the weeks ahead.

Markets Await Federal Reserve Decision

Investors are also closely watching the U.S. Federal Reserve's upcoming policy meeting, where officials are expected to discuss the future path of interest rates.

According to the CME FedWatch Tool, markets currently assign an 83.4% probability that the Fed will leave its target rate unchanged at 3.50% to 3.75% during the July meeting.

Looking ahead to September, market expectations indicate a 53.8% probability of a rate increase to the 3.75% to 4.00% range. Any shift in the Fed's guidance could influence broader risk sentiment and, by extension, the direction of Bitcoin and other digital assets.

Can the Rally Continue?

Bitcoin's move above $66,000 represents a notable improvement in its short-term technical outlook after successfully defending support above $65,000.

However, the sustainability of the rally may depend on whether buyers can establish a foothold above the $67,000 to $68,000 resistance zone with meaningful spot demand rather than relying primarily on short covering.

With the Federal Reserve's policy decision approaching and geopolitical developments in the Middle East still capable of influencing market sentiment, traders are likely to remain focused on both macroeconomic signals and on-chain demand to determine whether Bitcoin can extend its latest advance toward $70,000.