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Bitcoin Price Hits $23,000 After Pelosi’s Taiwan Visit, Trading Range Lasts

Bitcoin Price Hits $23,000 After Pelosi's Taiwan Visit, Trading Range Lasts

Bitcoin (BTC) has seen some volatility after the Wall Street open on August 2 amid continued market reactions to the tension between the United States and China.

BTC price moves as Pelosi lands in Taipei

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD surged over $23,000 on the day it was revealed that US House Speaker Nancy Pelosi had landed in Taipei, Taiwan, after warnings of retaliation from Beijing.

The visit, which raised fears of a major disaster, appeared to go off without a hitch, which analysts at banking giant JPMorgan said should encourage a rally in the market.

she did, pumping the markets pic.twitter.com/Os09HTGIoc — Fomocap (@fomocapdao) August 2, 2022.

At the time of writing, the S&P 500 and Nasdaq Composite Index were up slightly, reversing early losses. Earlier, Asian markets struggled amid the uncertainty, with the Shanghai Composite Index and Hong Kong’s Hang Seng losing around 2.3% on the day.

While traders were expecting a quiet end to the past few days in BTC, it remained to be seen whether the major trends nearby would continue after seeing overnight retests.

“The coming weeks/months in the cryptocurrency space will be volatile due to macro events playing a bigger role than ever before,” said intended Popular Crypto trader Tony.

Crypto Tony said he would increase his allocation if the BTC/USD pair leaves the range between $22,000 and $24,000 for lower levels.

This range was shared by another trader, Credible Crypto, who nevertheless admitted that a trip towards $25,000 was also possible.

No change on that thought – still looking for a move down to GREEN or at least the low swing defined by the RED X here before the follow up to 25,000+ for BTC. https://t.co/P3WKkLRmls pic.twitter.com/u494VRotcd — CrediBULL Crypto (@CredibleCrypto) August 1, 2022.

In a potential wave for bitcoin and risk assets, the US Dollar Index (DXY) capitalized on daily strength as events rebounded to reach the 106 mark.

The Bloomberg dollar index also recorded gains as Ms. Pelosi became the first speaker of the US House of Representatives to visit Taiwan in 25 years.

The Bloomberg dollar index also rose as did Pelosi get up the first Speaker of the United States House of Representatives to visit Taiwan in 25 years.

1-hour candlestick chart of the US Dollar Index (DXY). Source: Trade View

Bitcoin Third Quarter Gains and Losses Fib Cap Levels

Meanwhile, trading firm QCP Capital confirmed that it does not expect bitcoin to fall back to the low of $17,600 hit in 2022.

Also read: Best monthly gains from October 2021 – 5 things to know about bitcoin this week

“We expect BTC price to rise from here for most of Q3, with capped upward rallies but also reductions in choppy price action,” analysts wrote in their market summary published on August 1.

Beyond this period, however, QCP has not ruled out a “fundamentally successful” move to officially end the current bear market. In “extreme” circumstances, this can mean prices as low as $10,000.

A temporary pivot point, he said, could be a Fibonacci level at $28,700.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading involves risk. You should do your own research before making a decision.

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