Bitcoin Run-up Shows Vulnerability to Unwinding

Dow Jones07-23 03:06

1506 ET - Bitcoin is down 0.8% to $65,884 -- hitting resistance at $66k to $68k and potentially unwinding further, says analysts with Bitfinex in a note. That's because spot trading volume is light meaning that there's little underpinning the current rally. "The recovery appears to be driven primarily by derivatives positioning and a lack of sellers rather than an influx of fresh capital," says Bitfinex. Data from Deribit shows a spike in calls around $70k to $72k, the majority dated for July 31. Light volumes could result in extreme choppiness in reaction to some sort of event, says Bitfinex. "A market that climbs on thin participation can travel quickly in either direction, because there is little resting liquidity to absorb a shift in flow," the firm says. (kirk.maltais@wsj.com)

(END) Dow Jones Newswires

July 22, 2026 15:06 ET (19:06 GMT)

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