Bitcoin price approaches potential springboard to $23K as DXY cools surge

Published at: July 6, 2022

Bitcoin (BTC) approached the July 6 Wall Street open near $20,000 as a fresh battle between support and resistance loomed.

Whale levels close by

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wedged in a tight trading range with liquidity creeping closer to spot on the day.

After recovering 6% losses from the day before, order book data confirmed that support and resistance were now almost shoulder-to-shoulder.

According to on-chain monitoring resource Whalemap, a cluster of whale positions between $20,546 and $21,327 meant that this large area was now the zone to beat.

Buyer interest, meanwhile, stayed at around $19,200. This also formed whale bids after BTC/USD dipped to multi-year lows of $17,600 in Q2.

#Bitcoin's range from a whale perspective. Let's see how this range resolves. pic.twitter.com/UsN7NrF3AC

— whalemap (@whale_map) July 5, 2022

“D1 close above 20.5k and maybe we’ll finally get D1 trend retest,” popular trader Pierre, meanwhile, tweeted in a fresh update:

“Warned few weeks ago this was setting up like May for a lot of chop while D1 trend would catch down with price. So far that’s exactly what we got, I’d just like a proper D1 trend retest, last one was at 32k…”

An accompanying chart showed moving averages between 10 days and 30 days keeping spot in check.

At $20,200 at the time of writing, BTC/USD thus traded immediately below an important line in the sand on lower timeframes. For Cointelegraph contributor Michaël van de Poppe, breaking through this could open up the path to the other side of resistance at $23,000.

This one did crack the resistance and ran towards the next area of resistance at $20.3K.I'm expecting #Bitcoin to consolidate for a bit here, but breaking the next resistance zone is a trigger for continuation towards $23K and a summer relief rally. https://t.co/e8tFtrnEsz pic.twitter.com/DnQHcCL3dF

— Michaël van de Poppe (@CryptoMichNL) July 5, 2022

Industry news had little impact on BTC price action, this coming in the form of crypto exchange Voyager Digital filing for bankruptcy, the latest domino in a chain reaction sparked by the breakdown of lending platform Celsius.

USD takes a breather

On the macro level, Asian markets drifted lower, with Hong Kong’s Hang Seng down 1.2% and the Shanghai Composite Index down 1.4% at the time of writing.

Related: ARK Invest 'neutral to positive' on Bitcoin price as analysts await capitulation

The United States dollar index (DXY), fresh from a surge to new twenty-year highs, meanwhile, consolidated immediately below the peak, still above 106.

“First time we’re seeing such a recovery after a severe correction + strength on the $DXY,” Van de Poppe added:

“Strength on the equities as well. Wouldn’t be surprised if this continues in the coming period, despite the overall sentiment being ultra bearish.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Related Posts
Bitcoin price focuses on $55K as bulls ignore a surging US dollar
Bitcoin (BTC) challenged levels within 10% of all-time highs on March 10 as strength in the U.S. dollar failed to dent the bullish trend. $56,000 resistance is next BTC price hurdle Data from Cointelegraph Markets and TradingView tracked a comeback from an overnight correction for BTC/USD on March 10, with the pair targeting $55,000. After hitting two-week highs of $54,500 the previous day, Bitcoin improved on its performance to hit $55,700 before encountering a strong band of resistance and heading lower. The latest resurgence underscores new-found strength in the largest cryptocurrency this month, something that continues to take it to …
Bitcoin / March 10, 2021
5 reasons why Bitcoin could be a better long-term investment than gold
The emergence of forty-year high inflation readings and the increasingly dire-looking global economy has prompted many financial analysts to recommend investing in gold to protect against volatility and a possible decline in the value of the United States dollar. For years, crypto traders have referred to Bitcoin (BTC) as “digital gold,” but is it actually a better investment than gold? Let’s take a look at some of the conventional arguments investors cite when praising gold as an investment and why Bitcoin might be an even better long-term option. Value retention One of the most common reasons to buy both gold …
Adoption / June 3, 2022
Bitcoin’s inverse correlation with US dollar hits 17-month highs — what’s next for BTC?
Bitcoin (BTC) has been moving in the opposite direction of the United States dollar since the beginning of 2022 — and now that inverse relationship is more extreme than ever. Bitcoin and the dollar go in opposite ways Notably, the weekly correlation coefficient between BTC and USD dropped to 0.77 below zero in the week ending July 3, its lowest in seventeen months. Meanwhile, Bitcoin’s correlation with the tech-heavy Nasdaq Composite reached 0.78 above zero in the same weekly session, data from TradingView shows. That is primarily because of these markets’ year-to-date performances amid the fears of recession, led by …
Bitcoin / July 3, 2022
Bitcoin price rises above $19.6K as US dollar strength falls to 3-week lows
Bitcoin (BTC) returned to local highs at the Oct. 25 Wall Street open as nervous analysts kept an eye on miners. DXY provides instant relief for BTC Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to offer a modest challenge to resistance, still unable to escape an established trading range. United States equities likewise headed modestly higher, the S&P 500 and Nasdaq Composite Index up 1% and 1.3%, respectively at the time of writing. The U.S. dollar index (DXY) conversely lost ground on the day, falling to its lowest levels since Oct. 6 and providing potential tailwinds for …
Bitcoin / Oct. 25, 2022
Price analysis 11/28: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT
China witnessed a spike in Covid cases and that has resulted in strict lockdown restrictions in several parts of the country. This triggered widespread protests in China and has possibly pulled the global stock markets lower. In addition to the turmoil in China, the cryptocurrency markets, which are already in a bear grip, are reeling under pressure from the Chapter 11 bankruptcy filing by BlockFi and its subsidiaries. Bitcoin (BTC) is down 21% in November, on track to its worst November performance since 2018. The sharp fall in Bitcoin’s price has drastically reduced the number of wallets holding more than …
Bitcoin / Nov. 28, 2022