Bitcoin lurks by $22K as US dollar falls from peak, Ethereum gains 20%
It’s all about Ethereum for crypto traders on the day as Bitcoin faces crucial resistance and a slew of sellers lying in wait.
Bitcoin (BTC) hugged $22,000 on July 19 as macro conditions slowly turned to favor risk assets.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Stocks, crypto rise as dollar weakens
The Wall Street open saw further gains for United States equities in the face of a declining U.S. dollar, which extended its retracement after hitting its latest two-decade peak.
The U.S. dollar index (DXY) stood at around 106.5 at the time of writing, down 2.6% from the high seen July 14.
For Bitcoin analysts, it was thus a case of wait and see as markets bided their time between buy and sell levels.
These are the options on #Bitcoin right .. If we can sustain above the $21,700 range high and gain momentum, we can pump for the wave 3 ..
However, if we die down i am looking for another corrective wave down .. pic.twitter.com/cLGVGdTivK
— Crypto Tony (@CryptoTony__) July 19, 2022
“Shared this chart before, but just like that the $DXY is tanking, resulting into risk-on assets showing some momentum,” Cointelegraph contributor Michaël van de Poppe tweeted in an update on the day alongside a DXY chart.
“Yields need to drop now too, but the weakness on the Dollar could put more strength on crypto and Bitcoin.”U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
On-chain monitoring resource Material Indicators, meanwhile, flagged the difference in strength between “psychological” levels such as $21,000 and $22,000 and the 200 WMA closer to $23,000.
“IMO, resistance at $21k and $22k are psychological, whereas the 200 WMA serves as legit technical resistance. FireCharts shows more BTC bid liquidity coming in to support an R/S flip at $21k,” it told Twitter followers on the day publishing data from the Binance order book.
“Looking for more bid liquidity to challenge the ever important 200 WMA.”BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
The day belongs to Ethereum
ETH/USD, already up 25% in a week, added to its momentum overnight, climbing another 20% in just over 24 hours to briefly pass $1,600.
Resistance in the form of the 2018 high at $1,530 posed little problem for bulls, with the level forming a support focus at the time of writing.
“Ethereum relative to Bitcoin has closed above a key resistance,” popular trading account Game of Traders forecast.
“Buckle up for some big moves.”ETH/USD 1-day candle chart (Binance). Source: TradingView
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