Bitcoin soars 12%: can it hold the 70,000 mark? ETF funding reveals the truth

According to Woofun AI, the Bitcoin price rebounded strongly and re-established the $70,250 core support level, indicating that the market is trying to stabilize the situation after experiencing sharp fluctuations. This price level is not only a psychological line of defense at the integer mark, but also a key watershed in the transition between high and low points in the previous downtrend. Its gains and losses directly determine whether the bulls can maintain their offensive in the short term.

Judging from the deep deconstruction of the technical structure, Bitcoin's trend is in the midst of a complex EMA and Fibonacci retracement game. Looking back at the chart, the price recovered from a low near $57,700 in June, and the previous high was fixed at $82,800 in May. Using the Fibonacci retracement tool to scale this decline, traders were able to assess whether the rebound had the potential to evolve into a broad recovery.

Currently, Bitcoin has returned to the midpoint of $70,250, which is more technically significant than the $70,000 integer mark because it accurately marks the dividing line between the low and high points of the downtrend between May and June. Maintaining this position during the test again indicates that buyers are willing to continue to support the price trend even after the initial breakout. The next key retracement point is at $73,200. Bitcoin stagnated in the region at the end of May, so it became the first resistance point where the rebound momentum intersected with earlier supply pressure. Further above, the 0.786 Fibonacci retracement level near $77,400 forms the next line of defense in the current chart range.

Notably, Bitcoin not only broke through the $70,000 mark, but also joined the three moving averages that have been suppressing it during the recent decline: the 50-day simple moving average of $64,200, the 100-day simple moving average of $66,150, and the 200-day simple moving average of $68,970. Each moving average represents the average closing price for different time periods. Among them, the 50-day EMA is more sensitive to recent trading trends, while the 200-day EMA changes slowly and is commonly used to determine the position of asset prices relative to long-term trends.

Although the price has broken through, the order of the three moving averages still reflects earlier selling pressure — the 50-day EMA is still below the 100-day and 200-day EMAs. Stabilizing above these three moving averages means a strong short-term rebound; however, to achieve a complete trend reversal, Bitcoin will need to stay above these moving averages for a long time until they themselves begin to move upward. At the time of the retracement, the 200-day simple moving average of $68,970 was the most important support of the three. Below that, the $0.382 Fibonacci level at $67,280 and the 100-day simple moving average at $66,150 form two additional nearby support areas, providing multiple layers of defense for the bulls.

According to data compiled by Woofun AI, this market erupted in the midst of a larger wave of short-term liquidations triggered by the 'eighth largest liquidation incident in cryptocurrency history'. Liquidated short positions are not a new bullish investment behavior; they are the result of exchanges forcibly closing these positions through buying in the derivatives market when short positions reach the liquidation threshold. Once the resistance is broken, especially when the market is in a volatile range that prompts traders to establish positions against rising prices, these forced purchases will quickly push up the price. Therefore, the rate at which Bitcoin is rising is not as indicative as its performance after the forced buying effect subsides. A return to the $70,250 point will indicate whether buyers are willing to continue holding this price without support from closing short positions.

Meanwhile, according to SosoValue statistics, Bitcoin spot ETFs in the US market achieved a total net inflow of $5171.9 million on August 19, which is the highest single-day net inflow since May 4.

This inflow of capital is unrelated to the stressful situation in the derivatives market. The ETF data was released after the end of the US trading session. It is impossible to show the exact time of Bitcoin purchase, but it can be shown that demand is not limited to traders who are closing leveraged short positions, but also that real money flows into regulated spot fund products, providing the market with independent liquidity verification.

The test for the next trend is clear: first, hold the $70,250 point for another test, then break through the $73,200 mark before the market attempts to challenge the $77,400 retracement level. Verification of this technical path will determine whether this round of rebound is a brief return to the mean or the starting point of a new trend. Source note: Technical analysis points are based on the BTC/USD spot currency pair TradingView chart on the Bitstamp platform at 09:52 UTC on August 20, 2026. ETF fund flow data comes from a historical data sheet provided by SosoValue, which shows a net inflow of $5171.9 million on August 19, which is also the highest single-day net inflow since May 4. As for background information relating to the liquidation, it has already been mentioned in the article.