With support and resistance within millimetres of the spot price, BTC/USD has less and less room to consolidate.
Bitcoin (BTC) reached the opening price of $20,000 on Wall Street on July 6 as a new struggle between support and resistance loomed.
Whale levels nearby
According to TradingView data, the BTC/USD pair was trading inside a tight range, with liquidity inching closer to spot.
After recouping 6 percent of the previous day’s losses, order book data revealed that support and resistance were now nearly parallel.
According to the on-chain monitoring site Whalemap, a concentration of whale positions between $20,546 and $21,327 indicated that this expansive area was now the target zone.
In the meantime, buyer interest remained at $19,200; this included whale bids that emerged when BTC/USD fell to multi-year lows of $17,600 in Q2.
#Bitcoin's range from a whale perspective.
Let's see how this range resolves. pic.twitter.com/UsN7NrF3AC
— whalemap (@whale_map) July 5, 2022
“D1 close over 20.5k and maybe we’ll finally see a D1 trend retest,” popular trader Pierre tweeted.
“A few weeks ago, it was foreseen that there would be a great deal of volatility, similar to May, as the D1 trend caught up with the price. I’d just like a real D1 trend retest, as the previous one was at 32k…”
Moving averages between 10 and 30 days were depicted on the accompanying graph, demonstrating their effectiveness in containing spot.
BTC/USD traded around $20,200 at the time of writing, immediately below a crucial line in the sand on lower timeframes; breaching this might pave the way to $23,000 on the other side of resistance.
This one did crack the resistance and ran towards the next area of resistance at $20.3K.
I'm expecting #Bitcoin to consolidate for a bit here, but breaking the next resistance zone is a trigger for continuation towards $23K and a summer relief rally. https://t.co/e8tFtrnEsz pic.twitter.com/DnQHcCL3dF
— Michaël van de Poppe (@CryptoMichNL) July 5, 2022
The filing for bankruptcy of cryptocurrency exchange Voyager Digital was the latest domino in a chain reaction initiated by the collapse of loan platform Celsius, although it had minimal effect on BTC price action.
The USD takes a break.
At the time of writing, the Hang Seng in Hong Kong was down 1.2% and the Shanghai Composite Index was down 1.4%.
Fresh off a jump to new twenty-year highs, the U.S. dollar index (DXY) consolidated immediately below the peak, remaining above 106.
“In addition, the equity market is strong. Even if mood is quite pessimistic, I wouldn’t be shocked if this trend persists in the future period.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.