Bitcoin (BTC) hit daily resistance at the Wall Street open on August 3 as US equities rose on relief over Taiwan.
Stocks rise as the US dollar increases
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair moving back into the zone just below $23,500, which has been acting as resistance since the beginning of the month.
Both previously held the same area as support and were now deciding if a new resistance/support reversal was in order.
For popular Crypto trader Tony, $23,500 was therefore the price to watch BTC go long.
Keep it simple this morning #Bitcoin ..
– Long above resistance at $23,500
– Cut below support at $22,650 pic.twitter.com/onXXRvdXx8
— CryptoTony (@CryptoTony__) August 3, 2022
$BTC/$USD – Update Things are staying simple this morning on #Bitcoin – Long above resistance at $23,500 – Short support below $22,650 pic.twitter.com/onXXRvdXx8 — Crypto Tony (@CryptoTony__) August 3, 2022.
On the downside, another trader Pentoshi he emphasized the field in mind between $21,800 and $22,000 as the “line in the sand” for BTC.
Stocks performed well during the day, with the S&P 500 and Nasdaq Composite Index gaining 1.2% and 2% respectively after the open. The news that the Speaker of the US House of Representatives Nancy Pelosi has started a visit to Taiwan without any repercussions from China has raised the mood.
The US Dollar Index (DXY), after posting strong gains earlier in the week, consolidated after facing resistance at 106.8 on the hourly chart. May’s highs were joined by intraday lows, noticed analytics, with the potential for new two-decade highs still in place for cryptocurrency and risk-asset friction.
“With the dollar starting to show signs of strength (and yields easing higher), will equities continue to be resilient? Price action during 2022 is saying ‘no’” warning market analyst Caleb Franzen.
ARK takes advantage of the “evolving risk environment”
Meanwhile, in a summary 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.
Also Read: ARK Invest Says ‘Neutral to Positive’ on Bitcoin Price as Analysts Wait to Capitalize
In the latest edition of his research series, “The monthly BitcoinARK analysts, including CEO Cathie Wood and others, said “all eyes” are now on microtriggers.
“Given the positive correlation between bitcoin and US equities since COVID, the fact that the US is the main driver of bitcoin’s price suggests a risk-on market environment is emerging,” they wrote.
The United States, ARK adds, probably accounted for most of the interest in buying bitcoin during the July rally.
“Looking forward, however, the chances of a long rebound are uncertain.” Describing its stance as “neutral,” ARK delivered an “unlikely” potential downside target of just under $14,000.
“Comparable to the sell-off at the peak of the COVID crisis, the price of bitcoin has not reached a delta cost base, a price-adjusted cost base that subtracts the moving average of the market price from its market cost base and serves as the strongest level of support at bitcoin,” the report said.
“Although the probability of reaching its delta cost base has decreased, the downside risk in bitcoin is in a bear market at its delta cost base, currently $13,890.”
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