Bitcoin price is on the verge of a $23K potential springboard as DXY

07-Jul-2022 By: Sudeep Saxena

Bitcoin price is on the verge of a $23K potential

springboard as DXY cools the spike

BTC/USD has less and less room to consolidate as support and resistance close in on spot pricing.

A new conflict between support and resistance loomed as Bitcoin (BTC) approached the July 6 Wall Street open near $20,000.

Whale activity nearby

BTC/USD was trapped in a narrow trading range, according to data from CoinGabbar, with liquidity moving closer to the current price during the day.

Data from the order book revealed that support and resistance were now nearly shoulder-to-shoulder after recovering 6 percent of the previous day's losses.

Whalemap, an on-chain monitoring tool, reported that this vast area was now the one to beat due to a cluster of whale locations between $20,546 and $21,327. Meanwhile, buyer interest remained at roughly $19,200, with whale bids contributing to this level after BTC/USD fell to multi-year lows of $17,600 in Q2.

Moving averages between 10 days and 30 days were shown in the following chart to keep the spot under control.

BTC/USD so traded exactly beneath a crucial line in the sand on lower timeframes at $20,200 as of the time of writing. Michal van de Poppe, believes that passing through this would make it possible to reach the $23,000 area on the other side of the obstacle.

Industry news, which came in the shape of cryptocurrency exchange Voyager Digital declaring bankruptcy, was the most recent domino in a domino effect started by the collapse of loan platform Celsius, but it had little effect on BTC price movement.

USD pauses for a moment.

At the time of writing, the Shanghai Composite Index was down 1.4 percent and Hong Kong's Hang Seng was down 1.2 percent on the macro front.

Fresh off a jump to record twenty-year highs, the U.S. dollar index (DXY) has now steadied just below the top, but is still trading above 106.

This recovery following a significant correction and strength on the $DXY are both firsts. Added Van de Poppe.

Strength also in the stock market. Despite the generally extremely pessimistic tone, I wouldn't be shocked if this continued in the upcoming quarter.

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