Bitcoin price approaches potential springboard to $23K as DXY cools surge

Bitcoin (BTC), which approached the July 6 Wall Street Open near $20,000, was a new battle between supporter and resister.

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

Whale levels near by

TradingView and Cointelegraph Markets Pro data showed that BTC/USD was in tight trading range, with liquidity moving closer to spot each day.

After recovering 6% losses from the day before, order book data confirmed that support and resistance was now almost shoulder-to-shoulder.

Whalemap, an on-chain monitoring resource, said that a group of whale positions between $20.546 and $21,327 indicated that this area was the best.

Buyer interest remained at $19,200 despite the fact that BTC/USD dropped to multi-year lows in Q2.

From the perspective of a whale, #Bitcoin’s range. Let’s find out how this range works.
— Whalemap (@whale_map July 5, 2022

Pierre, a popular trader, tweeted that “D1 close to 20.5k” and that maybe we will finally get D1 trend test.

“Warned a few weeks ago, this was setting up as May for a lot chop while D1 trends would catch down with the price. That’s what we’ve seen so far. I’d like to see a D1 trend retest. Last one was at 32k …”.

The accompanying chart displayed moving averages of 10 to 30 days, keeping spot in mind.

The BTC/USD traded at $20,200 as of the writing. This puts it below the important line in the sand for lower timeframes. Michael van de Poppe, a Cointelegraph contributor, believes that breaking this line could allow for the passage to $23,000 resistance.

This one broke the resistance and moved towards $20.3K. I expect #Bitcoin will consolidate for a while here. However, breaking the next resistance zone will be a trigger to continue towards $23K as well as a summer relief rally.
— Michael van de Poppe (@CryptoMichNL) July 5, 2022

The industry news had little effect on BTC prices, with Voyager Digital declaring bankruptcy. This is the latest in a series of events that have been triggered by Celsius’s collapse.

USD takes a break

Macro markets in Asia drifted lower with Hong Kong’s Hang Seng falling 1.2% and Shanghai Composite Index dropping 1.4% as of the writing.

Related: ARK Invest ‘neutral’ to positive on Bitcoin price, as analysts wait for capitulation

After a surge to new twenty year highs, the U.S. dollar Index (DXY) remained at or near the peak of 106.

Van de Poppe said, “First time we see such a recovery following a severe correction + strength in the $DXY.”

Strength on the equities also. I wouldn’t be surprised to see this trend continue in the next period, even though overall sentiment is ultra bearish.

U.S. dollar index (DXY) 1-month candle chart. Source: TradingViewcom. You should do your research before making any investment or trading decision.