Bitcoin (BTC), which rose to daily resistance at Aug. 3 Wall Street Open, as the United States gained on relief from Taiwan.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Stocks rise as the US dollar coils
TradingView and Cointelegraph Markets Pro data showed that BTC/USD returned to the area below $23,500. This was the resistance level since the beginning of the month.
The pair held the same support zone previously and were now trying to decide if a new resistance/support flip was possible.
Crypto Tony, a popular trader, said that $23,500 was the best price to invest in Bitcoin.
$BTC / $USD – Update Keep it simple this morning on #Bitcoin .. – Long above resistance at $23,500 – Short below support at $22,650 pic.twitter.com/onXXRvdXx8
— August 3, 2022, Crypto Tony (@CryptoTony__).
Pentoshi, a fellow trader, highlighted the $21,800 to $22,000 area as the “line between the lines” for BTC.
Stocks did well with the S&P 500 and Nasdaq Composite Index increasing 1.2% and 2.2% respectively after the open. The mood was buoyed by the news that Nancy Pelosi, the U.S. House Speaker, had started a trip to Taiwan without any repercussions from China.
After making solid gains at the beginning of the week, the U.S. dollar Index (DXY) held steady after encountering resistance at 106.8 during hourly time frames. Analysis noted that the intra-day lows were matched by May’s highs, with the potential to reach new two-decade highs in what would be friction for crypto- and risk assets.
Will stocks be resilient as the dollar shows potential signs of strength (and yields start to rise higher)? Market analyst Caleb Franzen said that price action through 2022 suggests that the answer is “no”.
U.S. dollar index (DXY), 1-hour candle chart Source: TradingView
RK taps for “emerging risks-on environment”
ARK Invest presented a snapshot of Bitcoin and Ether (ETH) and outlined a mixed view of where the market might go in 2022.
Related: ARK Invest ‘neutral’ to “positive” on Bitcoin price, as analysts wait for capitulation
According to ARK analysts, CEO Cathie Wood, and others, the “Bitcoin Monthly” was their latest research series.
They wrote that “Given the positive correlation of bitcoin and US Equities since COVID,” it suggested an emerging risk-on-market environment.
ARK said that the United States had likely been the largest buyer of Bitcoins during July’s recovery.
However, it was uncertain if there would be an extended rebound in the future. ARK described its stance as neutral and offered a possible “unlikely” bearish target just below $14,000.
The report stated that bitcoin’s price was not comparable to the collapse at the COVID peak.
“While there is less chance of bitcoin touching its delta basis, the downside risk for bitcoin in a bearish market technically remains at its delta cost base, which currently stands at $13,890.”
Screenshot of the Bitcoin cost basis chart Source: ARK Investcom. You should do your research before making any investment or trading decision.