Bitcoin traded higher on Thursday as spot exchange-traded funds (ETFs) returned to net inflows, ending a four-day streak of outflows. The reversal coincided with improved sentiment in the broader cryptocurrency market, which remains in the fear zone despite recent stability. Treasury Secretary Scott Bessent urged the Senate to pass the CLARITY Act, a regulatory measure that analysts view as a potential catalyst for institutional adoption and market clarity.

Spot Bitcoin ETFs recorded net inflows of $32.1 million on Wednesday, according to SoSoValue data. In contrast, spot Ethereum ETFs saw net outflows of $18.7 million during the same period. The divergence highlights shifting investor preferences between the two largest digital assets. Meanwhile, Coinglass data indicated that 89,252 traders were liquidated in the past 24 hours for a total of $274.16 million, reflecting continued volatility and leverage risks within the derivatives market.

Technical Outlook and Analyst Views

Market participants are closely monitoring key technical levels for Bitcoin. Chart analyst Ali Martinez stated that a pullback to $60,000 should not be viewed as bearish, as it could help Bitcoin complete an inverse head-and-shoulders pattern. A breakout above $66,500 would confirm this setup and could pave the way for a rally toward $74,000. Trader Daan Crypto Trades noted that Bitcoin is retesting local resistance, with $65,000 acting as the key breakout level. A move above that threshold could open the door for another attempt at reclaiming the $67,000 local high.

Trader KillaXBT believes this cycle could be the first where Bitcoin remains above the key blue support band, a level that has historically signaled major bullish trend reversals. As long as Bitcoin holds above this support, the trader sees no strong reason to expect the current cycle to deviate from past rallies that led to significant upside.

What the Numbers Show

The return of capital to Bitcoin ETFs after four days of outflows suggests a stabilization of short-term selling pressure. However, the simultaneous outflows from Ethereum ETFs indicate that investor confidence is not uniform across all major assets. The high volume of liquidations ($274.16 million) underscores the fragility of leveraged positions even as spot prices hold steady. Regulatory developments, specifically the push for the CLARITY Act by Treasury Secretary Scott Bessent, remain a critical external factor influencing long-term market structure and institutional participation.

Bitcoin’s Local Market Stress Index spiked to 16 on Wednesday, marking the second significant impulse in three days. The rise was driven entirely by price movement, reflecting how far current action has deviated from the past 90 days. According to on-chain analyst Axel Adler Jr., the current stress is real but contained, as exchange flows and derivatives leverage remain flat. This lack of participation from flows and leverage prevented the index from climbing further, keeping the market in a "Calm" zone rather than signaling genuine capitulation.

Adler highlighted that without flow confirmation, an escalation above 40 is unlikely. He pointed to two prior spikes to illustrate what real market stress looks like: on July 28, Flow Stress hit roughly 88 alongside price pressure, pushing the index to 52; on June 4, a similar combination drove it to 71. In both historical instances, exchange flows were the critical ingredient that turned a price dip into genuine market stress. Currently, only Price Stress is active.

The trigger for turning this current impulse into real stress would be Flow Stress rising while Price Stress stays elevated. As long as exchange inflows remain quiet, the current momentum is expected to dissipate quickly. Late July has produced regular stress spikes, but all have been driven by price alone, indicating a market that is stressed but not capitulating.

In related developments, Spot Bitcoin ETFs recorded $32.1 million in net inflows on July 29, according to SoSoValue data. This positive session ended a four-session outflow streak that totaled over $500 million. Despite the single positive day, weekly net outflows stand at $29.29 million, while monthly net inflows reached $204.7 million in July.

What the Numbers Show

The divergence between price-driven stress and flat exchange flows suggests that sell-side pressure is not being amplified by institutional distribution or leveraged liquidations. While the price has deviated significantly from its 90-day average, the absence of flow stress indicates that holders are not rushing to exchanges to sell. This containment keeps the broader market structure intact despite the technical pressure.

Key BTC Levels — July 30, 2026

Technically, Bitcoin is pressing directly into the descending trendline that has capped every rally since the October 2025 peak at $125,000. The 20-day SMA at $64,468 sits above the 50-day SMA at $63,391, pointing to a bounce attempt underway. However, the 50-day SMA remains well below the 200-day SMA at $71,599, keeping the bigger picture under pressure.