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Bitcoin in Up hill struggle for $23.5k during relief from Pelosi Taiwan Trip

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The lack of retaliation rom China has emboldened the US stock market as research has found that the market is becoming more “risk-on.”

Bitcoin(BTC) rose to a new resistance as of August 3 during the wall street open.  Market data has shown that BTC/USD is returning to  $23,500, a major resistance point since the beginning of the month. 

The pair has moved within the same zones with support and has been teetering on a new resistance/ support flip. Crypto Tony had this to say in a tweet about the $23,500 price. 

A fellow trader by the name of Pentoshi nted that the area between $21,800 and $22,000 is the “line in the sand” for BTC

The DXY consolidated, facing a resistance at 106.8 on hourly timeframes after solid gains at the start of the week. The intr-day lows were equivalent to the highs from May, meaning potential for a new two decade high is still in play, which may signal friction for crypto and risk assets. 

“As the dollar starts to show potential signs of strength (and yields begin to rip higher), will stocks continue to remain resilient? Price action throughout 2022 tells us ‘no,’” market analyst Caleb Franzen said. 

A summary of the Bitcoin and Ether status quo by ARK invest gave a mixed outline of the projections for the rest of 2022. 

The latest research by the investment company said that “all eyes” were now on macro triggers.

“Given the positive correlation between bitcoin and US equities since COVID, the US being the leading price mover of bitcoin suggests an emerging risk-on market environment,” they wrote.

”Going forward, however, the odds of an extended rebound are uncertain. Describing its stance as “neutral,” ARK delivered a potential “unlikely” bearish target of just under $14,000.

“Comparable to the selloff at the peak of the COVID crisis, bitcoin’s price did not reach its delta cost basis, a price adjusted cost basis that subtracts the life-to date moving average of market price from its market cost basis and serves as bitcoin’s strongest support level,” the report stated.

“While the likelihood of touching its delta cost basis has diminished, bitcoin’s downside risk in a bear market technically stands at its delta cost basis, currently $13,890.”

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