The Bitcoin price is potentially approaching the springboard to $ 23K as DXY cooling increases
Bitcoin (BTC) approached the Wall Street opening on July 6 close to $ 20,000 as a new battle between support and resistance approached.
Whale levels nearby
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD was wedged into a tight trading area with liquidity that came closer to the point of the day.
After recovering a 6% loss from the previous day, order book data confirmed that support and resistance were now almost shoulder-to-shoulder.
According to the 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, remained at around $ 19,200, which was also formed by whale bids formed after the BTC / USD fell to a multi-year low of $ 17,600 in Q2.
#Bitcoins range from a whale perspective.
Let’s see how this area resolves. pic.twitter.com/UsN7NrF3AC
– whale map (@whale_map) July 5, 2022
“D1 is approaching over 20.5 000 and maybe we will finally get the D1 trend retest,” tweeted the popular trader Pierre in a recent update.
“Warned a few weeks ago that this was set up as May too many cuts while the D1 trend would fall with the price. So far that is exactly what we have received, I just want a proper D1 trend test, the last one was at 32k … ”
An accompanying chart showed moving averages between 10 days and 30 days and kept the spot in check.
At $ 20,200 at the time of writing, BTC / USD was immediately trading below an important line in the sand on lower time frames. For Cointelegraph contributor Michaël van de Poppe, breaking through this open road to the other side of the opposition could cost $ 23,000.
This cracked the resistance and ran towards the next resistance range of $ 20.3K.
I expect #Bitcoin to consolidate a bit here, but breaking the next resistance zone is a trigger for continuation towards $ 23K and a summer relief rally. pic.twitter.com/DnQHcCL3dF
– Michaël van de Poppe (@CryptoMichNL) July 5, 2022
Meanwhile, industry news had little effect on the BTC price action, and this came in the form of the crypto exchange Voyager Digital, which filed for bankruptcy, the latest domino in a chain reaction triggered by the collapse of the lending platform Celsius.
USD takes a breather
In macro terms, Asian markets were down, 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 while analysts await capitulation
The US dollar index (DXY), fresh from a rise to new highs, has meanwhile consolidated just below the top, still above 106.
“The first time we see such an improvement after a serious correction + strength of $ DXY,” Van de Poppe added.
“Strength in equities as well. Would not be surprised if this continues in the coming period, despite the fact that overall sentiment is ultra bearish.”
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