Bitcoin Price Hits $23,500 Against Resistance Amid Relief After Pelosi’s Taiwan Trip

Bitcoin Price Hits $23,500 Against Resistance Amid Relief After Pelosi's Taiwan Trip

Bitcoin (BTC) hit daily resistance at the Wall Street open on August 3 as US equities rose on relief over Taiwan.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

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.

$BTC/$USD – Update Things are staying simple this morning on #Bitcoin – Long above resistance at $23,500 – Short support below $22,650 — 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.

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

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.”

Graph of bitcoin cost base (screen). Source: ARK Invest

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

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Bitcoin Price Hits $23,500 Against Resistance Amid Relief After Pelosi's Taiwan Trip

Bitcoin Price Hits $23,500 Against Resistance Amid Relief After Pelosi’s Taiwan Trip