Bitcoin (BTC) hit $22,000 on July 19 as macroeconomic conditions slowly shifted to favor risky assets.
Stocks and Crypto Rise as Dollar Weakens
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair cooling volatility immediately below the crucial 200-week moving average (WMA).
At the opening of Wall Street, US stocks continued to gain as the dollar fell, extending its decline after hitting its last two-decade high.
The US dollar index (DXY) was around 106.5 points at the time of writing this report, which is a decrease of 2.6% from the maximum reached on July 14.
For Bitcoin analysts, it was all about wait and see as the 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
$BTC/$USD – Update
These are the options on Bitcoin.. If we can sustain above the $21,700 range high and gain momentum, we can pump for wave 3..
However, if we die down I am looking for another corrective wave down.
“I shared this chart before, but $DXY is sinking as well, resulting in risky assets showing some momentum,” tweeted Cointelegraph contributor Michaël van de Poppe in an update on the day along with a DXY chart.
“Yields have to come down now too, but dollar weakness could give cryptocurrencies and Bitcoin more strength.”
On-chain monitoring resource Material Indicators, for its part, noted the difference in strength between “psychological” levels such as $21,000 and $22,000 and the WMA 200 closer to $23,000.
“IMO, the resistance at $21k and $22k are psychological, while the 200 WMA serves as legitimate technical resistance. FireCharts shows more BTC supply liquidity to support a $21,000 Resistance/Support flip,” said to Twitter followers on the day of the Binance order book data release.
“Looking for more supply liquidity to challenge the ever-important 200 WMA.”
The day belongs to Ethereum
The déjà vu for altcoin traders, meanwhile, came in the form of Ether (ETH) outperforming against intraday gains from other major cryptocurrencies.
The ETH/USD pair, already up 25% in a week, added to its momentum overnight, surging another 20% in just over 24 hours to briefly break above $1,600.
Resistance in the form of the 2018 high at $1,530 posed little trouble for the bulls, with the level forming a focus of support at the time of writing.
“Ethereum relative to Bitcoin has closed above a key resistance”, forecast the popular Game of Traders trading account.
“Buckle up for some big moves.”
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