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

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Bitcoin (BTC) opened near $20,000 on Wall Street on July 6, as a new battle between support and resistance loomed.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

whale level close

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

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After recovering a 6% loss from the day before, order book data confirmed that support and resistance are now almost side by side.

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 a zone to be defeated.

Meanwhile, buyer interest remained at around $19,200, also forming whale bids after BTC/USD dropped to a multi-year low of $17,600 in Q2.

Popular trader Pierre meanwhile tweeted, “D1 closes above 20.5k and maybe we will finally get a D1 trend retest.” latest update,

“Warned a few weeks ago that it was setting up for a lot more chops like May while the D1 trend will catch up with the price. So far we have got it right, I want a proper D1 trend retest, The last one was at 32k…”

The combined chart shows moving averages between 10 days and 30 days with the spot in control.

At the time of writing, BTC/USD is thus trading just below an important line in the sand on the lower time frame, at $20,200. For Cointelegraph contributor Michael van de Pope, a breakout of this could open the way to the other side of resistance at $23,000.

Meanwhile industry news had little impact on BTC price action, with crypto exchange Voyager Digital filing for bankruptcy, the latest in a chain reaction sparked by the breakdown of Domino lending platform Celsius.

USD takes a breath

On the macro, Asian markets were lower, with Hong Kong’s Hang Seng down 1.2% and the Shanghai Composite Index down 1.4%.

RELATED: ARK invests ‘neutral to positive’ on bitcoin price as analysts await capitulation

The US dollar index (DXY), a bounce-back to a new twenty-year high, meanwhile consolidating immediately below the peak, is still above 106.

“For the first time we are seeing this kind of recovery after a serious correction + consolidation on $DXY,” Van de Pope couple,

“Strengthening on equities as well. Wouldn’t be surprised if this continues in the times to come, notwithstanding the overall sentiment being ultra bearish.”
US Dollar Index (DXY) 1-Month candle chart. Source: TradingView

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, so you should do your own research when making a decision.