New Traders in Japan Boosting Bitcoin Prices
At current price, BTC/USD has very little scope to consolidate. Coinbase and bitFlyer transactions in Japan have facilitated an ease of entry for fresh traders, who may be expected to inject buy pressure as they test knowledge and understanding of [...]
As the Wall Street market opened on July 6, Bitcoin (BTC) was near $20,000, as a new battle between support and resistance was about to take place.
Whale levels are low
Cointelegraph Markets Pro and TradingView reported that BTC/USD was trading in a tight range with liquidity creeping closer to spot on the day.
Data from order books showed that support and resistance levels were almost back to where they started.
Whalemap, a resource that monitors the on-chain transactions, reported that a group of whales was controlling positions between $20,546 and $21,327. As such, traders were advised to place their stop losses in this zone.
Whale bids formed after BTC/USD dropped to multi-year lows of $17,600 in Q2, and this activity sustained the price of BTC at around $19,200.
#Bitcoin's range from a whale perspective.
— whalemap (@whale_map) July 5, 2022
Let's see how this range resolves. pic.twitter.com/UsN7NrF3AC
Popular trader Pierre said in a recent update that "D1 may finally retest its trend if it goes above 20.5k."
“Warned few weeks ago this was setting up like May for a lot of chop while D1 trend would catch down with price. So far that’s exactly what we got, I’d just like a proper D1 trend retest, last one was at 32k…”
The moving averages between 10 days and 30 days were shown to keep the price in check.
At an exchange rate of $20,200 at the time of writing, BTC/USD was trading just below a significant line in the sand on lower timeframes. For Cointelegraph contributor Michaël van de Poppe, if this resistance is broken through, it could open up the path to the other side of resistance at $23,000.
This one did crack the resistance and ran towards the next area of resistance at $20.3K.
— Michaël van de Poppe (@CryptoMichNL) July 5, 2022
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
Meanwhile, news from the crypto industry had little effect on the BTC price, with exchange Voyager Digital filing for bankruptcy following the collapse of lending platform Celsius.
The USD stabilizes
At the time of writing, Hong Kong's Hang Seng fell 1.2%, and the Shanghai Composite Index dropped 1.4%.
ARK Invest is neutral to positive on Bitcoin's price as analysts await capitulation,
The U.S. dollar index (DXY), having hit new twenty-year highs, soon stabilized below the peak, and remained above 106.
"This is the first time we have seen this kind of recovery after a severe correction, and the $DXY's strength," Van de Poppe said.
"Strength on the equities as well. Wouldn't be surprised if this continues in the coming period, despite the overall sentiment being ultra bearish."
