Log in/ Sign up

Bitcoin price could head to $23,000 as DXY cools

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

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

close to whale level

Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is stuck in a narrow trading range, with liquidity gradually approaching spot on the day.

After paring a 6% loss from the previous day, order book data confirmed that support and resistance are now nearly neck-and-neck.

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

Meanwhile, buyer interest remains around $19,200, which is also bid by whales after BTC/USD fell to a multi-year low of $17,600 in the second quarter.

“D1 closes above 20.5k, maybe we will finally retest the D1 trend,” popular trader Pierre tweeted in the same update.

“Warning a few weeks ago that it’s like May, there’s going to be a lot of chopping and the D1 trend catches up to the price. So far that’s exactly what we’ve got, I just want a proper D1 trend replay Test, the last one is 32k..."

The attached picture shows that the 10-30 day moving average is controlling the spot.

At the time of writing, BTC/USD is trading at $20,200, so on lower time frames BTC is trading below an important sub-line. For Cointelegraph contributor Michaël van de Poppe, a break above this could open the way to $23,000 on the other side of resistance.

Meanwhile, industry news had little impact on bitcoin price action, with crypto exchange Voyager Digital filing for bankruptcy, the latest domino in a chain reaction triggered by the collapse of lending platform Celsius.

dollar takes a breather

On the macro front, Asian markets were lower, with Hong Kong's Hang Seng down 1.2% and Shanghai Composite down 1.4% as of writing.

The U.S. dollar index (DXY) surged to fresh 20-year highs while consolidating below the peak, remaining above 106.

Van de Poppe added: "We are seeing such a recovery for the first time after a sharp correction + strength in USD DXY."

"Equities are also stronger. While the overall sentiment is extremely bearish, I wouldn't be surprised if this persists for some time to come."

US Dollar Index (DXY) 1-month candlestick. Source: TradingView

Add Comment
Load more comments