Bitcoin lurks by $22K as US dollar falls from peak, Ethereum gains 20%

Bitcoin (BTC), which was valued at $22,000, surged on July 19, as macro conditions gradually turned in favor of risk assets.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

As the dollar falls, stocks and crypto go up

Cointelegraph Markets Pro and TradingView data showed that BTC/USD’s cooling volatility was immediately below the 200-week moving mean (WMA).

Wall Street opened saw more gains for United States Equities in the face a falling U.S. Dollar, which extended its retracement since hitting its last two-decade high.

At the time of writing, the U.S. dollar-index (DXY), was at 106.5. This is down 2.6% from July 14’s high.

It was therefore a case for Bitcoin analysts to wait and see, as markets traded their time between sell and buy levels.

$USD / $BTC – Update These options are available on #Bitcoin right now. We can pump for wave 3 if we can maintain above the $21,700 high and gain momentum. However, if we die down i am looking for another corrective wave down ..
— July 19, 2022, Crypto Tony (@CryptoTony__).

“Shared this chart previously, but just as that the $DXY has tanked, resulting in risk-on assets showing some acceleration,” Michael van de Poppe, Cointelegraph contributor, tweeted in an update along with a DXY Chart.

“Yields must drop now, but weakness in the Dollar could give more strength to crypto and bitcoin.”

U.S. dollar index (DXY), 1-hour candle chart Source: TradingView

Material Indicators, an on-chain monitoring resource, also flagged the differences in strength between “psychological levels” such as $21,000 or $22,000, and the 200 WMA closer towards $23,000.

“IMO, resistance above $21k and $22k is psychological. The 200 WMA serves to provide technical resistance. FireCharts showed more BTC liquidity coming in support an R/S turn at $21k,” it informed Twitter followers.

“Looking to increase bid liquidity in order to challenge the 200 WMA.”

BTC/USD order books data (Binance). Source: Material Indicators/Twitter

Ethereum is the day

Altcoin traders saw a deja vu in the form Ether’s (ETH) outperformance against other major cryptocurrencies’ intraday gains.

Related: 100X Bitcoin energy consumption would translate into an ‘absurd $20M BTC price — developer

Already up 25% in a single week, ETH/USD gained momentum overnight and climbed another 20% in less than 24 hours to briefly surpass $1,600.

Bulls were not faced with resistance at $1,530, which was the 2018 high. The level formed a support center at the time.

Popular trading account Game of Traders forecasts that “Ethereum relative Bitcoin has closed above a critical resistance.”

“Set yourself up for big moves.”

1 Day Candle Chart ETH/USD (Binance). Source: TradingViewcom. You should do your research before making any investment or trading decision.

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