Bitcoin (BTC) rose to daily resistance at the Aug. 3 Wall Street open as United States equities gained on relief over Taiwan.
Stocks gain as US dollar coils
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to the area just below $23,500, which had figured as resistance since the start of the month.
The pair had previously held the same zone as support, and was now deciding on whether a new resistance/ support flip was on the cards.
For popular trader Crypto Tony, $23,500 was thus the price to watch to long BTC.
Keep it simple this morning on #Bitcoin ..
– Long above resistance at $23,500
– Short below support at $22,650 pic.twitter.com/onXXRvdXx8— Crypto Tony (@CryptoTony__) August 3, 2022
To the downside, fellow trader Pentoshi highlighted the area between $21,800 and $22,000 as the “line in the sand” for BTC.
Stocks performed well on the day, meanwhile, with the S&P 500 and Nasdaq Composite Index gaining 1.2% and 2%, respectively, after the open. News that U.S. house speaker Nancy Pelosi had begun a visit to Taiwan without repercussions from China buoyed the mood.
The U.S. dollar index (DXY), after solid gains of its own at the start of the week, consolidated after facing resistance at 106.8 on hourly timeframes. The intra-day lows matched with highs from May, analysis noted, with the potential for new two-decade highs still in play in what would represent 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 warned.
ARK taps “emerging risk-on environment”
In a summary of the status quo in Bitcoin and Ether (ETH), meanwhile, 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 await capitulation
In the latest edition of its research series, “The Bitcoin Monthly,” ARK analysts including CEO, Cathie Wood and others 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.
The U.S., ARK added, had likely represented the…
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