Bitcoin price battles resistance at $23.5K amid relief over Pelosi Taiwan trip
Bitcoin (BTC) rose to daily resistance at the Wall Street open on August 3 as US stocks rose on relief over Taiwan.
Stocks rise as US dollar tumbles
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD returned to the area just below $23,500, which had served as resistance since the beginning of the month.
The pair had previously held the same zone as support and was now deciding whether a new resistance/support flip was on the cards.
For popular trader Crypto Tony, $23,500 was thus the price to watch for long BTC.
Keep it simple this morning #Bitcoin ..
– Well above resistance at $23,500
– Short under support at $22,650 pic.twitter.com/onXXRvdXx8— Crypto Tony (@CryptoTony__) 3 August 2022
To the downside, Pentoshi co-trades highlighted the range between $21,800 and $22,000 as the “line in the sand” for BTC.
Stocks did well on the day, while the S&P 500 and Nasdaq Composite Index rose 1.2% and 2% respectively after the open. News that the Speaker of the US House, Nancy Pelosi, had begun a visit to Taiwan without repercussions from China lifted the mood.
The US dollar index (DXY), after solid gains at the start of the week, consolidated after meeting resistance at 106.8 on hourly time frames. The intraday lows matched May highs, analysis notedwith the potential for new two-decade highs still in play in what will represent friction for crypto and risk assets.
“As the dollar begins to show potential signs of strength (and yields begin to creep higher), will stocks continue to remain resilient? Price action through 2022 tells us ‘no,’” market analyst Caleb Franzen warned.
ARK taps “emerging risk environment”
Meanwhile, in a recap of the status quo in Bitcoin and Ether (ETH), investment firm ARK Invest painted a mixed picture of where the market could go in 2022.
Related: ARK Invest ‘Neutral to Positive’ on Bitcoin Price as Analysts Wait for Capitulation
In the latest edition of the research series, “The Bitcoin Monthly”, ARK analysts, including CEO Cathie Wood and others, said that “all eyes” were now on macro triggers.
“Given the positive correlation between bitcoin and US stocks since COVID, the US as the leading price mover for bitcoin suggests an emerging risk-on market environment,” they wrote.
The United States, ARK added, probably represented the majority of buying interest in Bitcoin during July’s recovery.
“Going forward, however, the odds for an extended return are uncertain. ARK described its stance as “neutral” and provided a potentially “unlikely” bearish target of just under $14,000.
“Compared to the selloff at the peak of the COVID crisis, bitcoin’s price did not reach the delta cost basis, a price-adjusted cost basis that subtracts the lifetime moving average of the market price from the market cost basis and serves as bitcoin’s strongest support level,” the report said.
“While the probability of touching the delta cost base has decreased, bitcoin’s downside risk in a bear market technically stands at the delta cost base, currently $13,890.”
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