Bitcoin (BTC) surged to daily resistance at the Wall Street open on August 3 as US stocks rallied with relief over Taiwan.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Stocks Gain as US Dollar Coins
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to the area just under $23,500, which was considered resistance since the beginning of the month.
The pair previously held the same support area and is now deciding if a new resistance/support reversal is on the cards.
For popular Crypto trader Tony, $23,500 was the price to watch for long BTC.
On the downside, fellow trader Bentoshi highlighted the region between $21,800 and $22,000 as a “line in the sand” for Bitcoin.
Meanwhile, stocks performed well on the day, with the S&P 500 and Nasdaq Composite up 1.2% and 2%, respectively, after the open. The mood was boosted by news that US House Speaker Nancy Pelosi will begin a visit to Taiwan without repercussions from China.
The US Dollar Index (DXY), after solid gains at the beginning of the week, has consolidated after encountering resistance at 106.8 on the hourly time frames. The analysis indicated that intraday lows correspond to highs from May, with new highs likely to continue in two decades in what could represent friction with crypto assets and risks.
“As the dollar begins to show signs of potential strength (and yields start to climb higher), will stocks continue to maintain their resilience? Market analyst Caleb Franzen warned of price action throughout 2022.
US Dollar Index (DXY) candlestick chart. Source: TradingView
ARK takes advantage of the ’emerging risk environment’
Meanwhile, in a summary of the status quo in Bitcoin and Ether (ETH), investment firm ARK Invest painted a mixed picture of where the market could go in 2022.
Related: ARK Invest “Neutral to Positive” on Bitcoin Price as Analysts Wait for Capitulation
In the latest edition of its research series, “The Bitcoin Monthly,” ARK analysts, including CEO Cathy Wood and others, said that “all eyes” are now focused on the macro triggers.
“Given the positive correlation between bitcoin and US stocks since COVID, the United States as the main driver of bitcoin prices indicates an emerging market environment with risks,” they wrote.
ARK added that the US likely represented the majority of bitcoin buying interest during the July recovery.
Going forward, the odds of an extended bounce are uncertain. Describing its position as “neutral”, ARK presented a potential “unlikely” bearish target below $14,000.
“Compared to the sell-off at the height of the COVID crisis, the price of bitcoin has not reached its delta cost basis, which is the adjusted cost basis that subtracts the moving average lifetime price of the market price from the market cost basis and acts as the strongest support level bitcoin,” the report stated.