Bitcoin briefly touched $ 70,000 during Wednesday’s New York trading session as institutional buyers returned to spot Bitcoin exchange-traded funds, fueling speculation that the cryptocurrency could target $80,000 in the coming weeks.
The latest recovery pushed BTC above a critical technical level at $68,338, the 200-week exponential moving average, according to data from TradingView. The BTC/USD pair was trading at $68,480 on Bitstamp as of Wednesday afternoon.
Analyst Rekt Capital warned that Bitcoin faces resistance from this trendline, noting that the cryptocurrency needs a weekly close above the exponential moving average to confirm the recovery. “The moment of truth is coming for Bitcoin,” Rekt Capital said, adding that the asset “will need a Weekly Close back above the EMA and flip it into new support to go against the grain of history.”
Fellow analyst Jelle emphasized that the price must turn the 50 EMA at $68,000 on the four-hour chart into support to validate the bullish momentum. A break above the 20-day EMA, currently at $69,220, could send Bitcoin toward $74,508, where sellers are expected to emerge.
Meanwhile, US-based spot Bitcoin ETFs recorded their strongest two-day performance in weeks, attracting $765 million in combined inflows on Tuesday and Wednesday. The Wednesday inflow of $507 million marked the largest single-day influx since Feb. 2, according to data from Farside Investors.
The return of institutional demand has shifted market sentiment, with traders eyeing liquidity clusters above current price levels. Data from monitoring resource CoinGlass showed Bitcoin tapping liquidity around $70,000, with approximately $2 billion in ask orders sitting between $72,450 and $75,000.
If Bitcoin breaks above $75,000, it could trigger a liquidation squeeze that forces short sellers to close positions, potentially driving the price toward $80,000. That level represents the next major liquidity cluster where significant sell orders are concentrated.
“Bitcoin’s liquidity hunt has only just started,” analyst AlphaBTC said in a recent post on X. “Unless there is a catalyst to drop, I am expecting these higher levels to get run in the next few weeks.”
X user Raster attributed the recent price action to “ETF inflows and short liquidations doing the heavy lifting,” adding that “this isn’t retail FOMO, it’s institutional accumulation with a technical breakout.”
The growing demand-side pressure from institutional investors could push Bitcoin prices higher, particularly when combined with continued ETF inflows and technical momentum. However, the cryptocurrency must maintain support above the $68,000 level for the rebound to continue.
Bitcoin’s latest recovery begins after weeks of consolidation below $70,000, with traders watching for signs of sustained institutional buying. The combination of spot ETF inflows and liquidation dynamics has created conditions for a potential rally toward higher price targets.
A failure to maintain this level could result in a retest of lower support zones.
The next few weeks will be crucial in determining whether Bitcoin can capitalize on renewed institutional interest and break through the resistance levels that have capped its price action in recent months. With $2 billion in liquidity sitting above $72,000, bulls have a clear roadmap for the next phase of the rally.
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