Bitcoin (BTC) hugged $22,000 on July 19 as macro conditions slowly turned in favor of risky assets.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Stocks, cryptocurrencies rise as dollar weakens
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD cooling volatility just below the 200-week moving average (WMA).
Wall Street’s opening saw further gains for US stocks in the face of a fall in the US dollar, which extended its rebound after hitting a two-decade high.
The US Dollar Index (DXY) is flat at around 106.5 at the time of writing, down 2.6% from its July 14 high.
For Bitcoin analysts, this was a case of waiting to see the markets waiting for their time between buying and selling levels.
Cointelegraph contributor Michael van de Poppe wrote in an update on the day alongside DXY Chart, “This chart has been shared before, but just like the US dollar is dropping, showing the riskier assets some momentum.”
“Revenues should drop now as well, but weakness on the dollar could further strengthen cryptocurrency and bitcoin.”
US Dollar Index (DXY) candlestick chart. Source: TradingView
Meanwhile, the material indicators of the on-chain monitoring resource pointed to a difference in strength between “psychological” levels such as $21,000 and $22,000 and the WMA closer to $23,000.
“IMO, the $21,000 and $22,000 resistance is psychological, while the 200 WMA is legitimate technical resistance. FireCharts is showing more BTC supply liquidity coming in to support R/S volatility at $21,000,” he told Twitter followers on the day. Data from the Binance order book.
“Looking for More Bid Liquidity for the Most Important 200 WMA Challenge.”
BTC/USD (Binance) order book data. Source: Material Indicators / Twitter
Today it belongs to Ethereum
Meanwhile, Deja vu came to altcoin traders in the form of Ether (ETH) outperforming against daily gains for other major cryptocurrencies.
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ETH/USD, which was already up 25% in the week, added to its momentum overnight, rising another 20% in just over 24 hours to briefly break above $1,600.
Resistance in the form of the 2018 high at $1,530 has posed little problem for the bulls, with the level forming to focus support at the time of writing.
Popular trading account Game of Traders predicted that “Ethereum relative to Bitcoin closed above a key resistance level.”
“Fasten your seat belts for some big moves.”
ETH/USD (Binance) 1 day candle chart. Source: TradingView
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