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 .. pic.twitter.com/cLGVGdTivK
— 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.