Bitcoin (BTC) saw volatility after the Aug. 2 Wall Street open amid ongoing market reactions to tensions between the United States and China.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD spiking above $23,000 on the day as news came in that Nancy Pelosi, speaker of the U.S. House of Representatives, had landed in Taipei, Taiwan after warnings of retaliation from Beijing.
The visit, which had raised concerns of a major incident occurring, appeared to go without a hitch — something an analyst at major banking giant JPMorgan had previously said would spark a market rally.
she made it, pump the markets pic.twitter.com/Os09HTGIoc
— Fomocap (@fomocapdao) August 2, 2022
Both the S&P 500 and Nasdaq Composite Index were slightly higher at the time of writing, reversing initial losses. Previously, Asian markets had fared worse on the uncertainty, with both the Shanghai Composite Index and Hong Kong's Hang Seng losing around 2.3% on the day.
As traders eyed an end to the recent few days' calm on BTC, it remained to be seen whether important trendlines nearby would continue to hold after seeing retests overnight.
"The next few weeks / months in the Cryptocurrecny space are going to be volatile due to macro events playing a bigger part than ever," popular trader Crypto Tony forecast.
Crypto Tony added that he would add to his allocation should BTC/USD quit the range between $22,000 and $24,000 for lower levels.
That range was shared by fellow trader Credible Crypto, who nonetheless acknowledged the potential for a trip to $25,000 as well.
No change to this idea- still looking for a move down to GREEN or at least the swing low denoted by the RED X here before continuation to the upside to 25k+ $BTC. https://t.co/P3WKkLRmlspic.twitter.com/u494VRotcd
— CrediBULL Crypto (@CredibleCrypto) August 1, 2022
In a potential headwind for Bitcoin and risk assets, the U.S. dollar index (DXY) capitalized on daily strength as events unfolded to aim for the 106 mark once more.
The Bloomberg dollar index likewise saw gains as Pelosi became the first U.S. speaker to visit Taiwan in 25 years.
Discussing the broader picture, meanwhile, trading firm QCP Capital confirmed that it did not expect Bitcoin to retest the 2022 lows of $17,600.
Related: Best monthly gains since October 2021 — 5 things to know in Bitcoin this week
"We expect BTC price to drift higher from here for most of Q3, with upside rallies capped, but also dips on choppy price action," analysts wrote in its market summary released Aug. 1.
Beyond that timeframe, however, QCP did not rule out a move to "break the lows" to officially end the current bear market. In "extreme" circumstances, it said, this could involve prices as low as $10,000.
An interim pivot point, it added, could be a Fibonacci retracement level at $28,700.
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.
Louis Vuitton unveils the VIA Tile Trunk, a €6,000 NFT symbolizing its bold move into Web3, blending high fashion with the digital landscape. This marks the brand's pioneering step into direct digital sales, showcasing a unique fusion of NFTs and physical luxury products, setting the stage for a dynamic future in the digital luxury market.
JixuCristiano Ronaldo faces legal repercussions as a class-action lawsuit accuses him of promoting Binance's unregistered securities through his NFT collections. The lawsuit alleges Ronaldo's endorsements fueled Binance's surge, leading to claims of influencing users' investment decisions, while the broader legal turmoil involving Binance and its founder adds to the scrutiny of celebrities in cryptocurrency promotions.
JixuSão Paulo Football Club pioneers NFT tickets for their upcoming match with Flamengo on December 6th, using the Smart Ticket system from their tech hub. This blockchain-based innovation challenges traditional ticketing, offering fans tiered pricing for tokenized tickets with tangible and digital experiences, aligning with the 'Loyalty 3.0' trend to enhance customer engagement.
JixuAnimoca Brands Japan and Quidd join forces to pioneer the convergence of anime and manga with Web3, offering a unique blend of Japanese intellectual properties and digital collectibles. This collaboration aims to cater to global fandom, providing innovative digital collectibles accessible to enthusiasts worldwide, bridging the cultural richness of Japanese anime and manga with cutting-edge technology.
JixuWormhole, a trailblazing messaging protocol facilitating blockchain cross-communication, has hit a new high in the crypto sphere, amassing $225 million in its latest fundraising.
YouQuanStability.ai has recently announced its latest breakthrough – the Stable Video Diffusion AI model. This innovation marks a significant leap in AI capabilities, enabling the transformation of still images into captivating animations.
JoyBinance has been given three months by the SEC "to give Filipino investors who have holdings in Binance to close their positions and take out their investments."
BrianDeepMind's AI predicts structures for two million materials, revolutionising discovery and applications in batteries, solar panels, and computer chips.
Hui XinSequence Builder is built to address a particular pain point - eliminating the need for developers to make trade-offs between integrating web3 elements and focusing on game design.
DavinBinance innovates with the world's first triparty crypto arrangement, enhancing security for institutional investors while also transitioning away from its BUSD stablecoin.
YouQuan