Bitcoin is hovering around $66,458 and probing a resistance area since mid-June. Meanwhile, the U.S. Dollar Index, or DXY, has overcome an important resistance. A strong dollar usually pushes risk assets, including Bitcoin, to reverse higher, but as you see below, Bitcoin and the dollar index are strengthening simultaneously. The following sessions may give a hint about the resilience of bitcoin demand against the rising dollar trend.
The largest cryptocurrency is testing the major resistance
After falling from highs over $74,000 in early June to roughly $57,600 in late June, the digital asset has begun to recover, with the rebound now bringing price action near the $67,255 breakdown from mid-June. Clearing above $67,255 on an impartial retest would offer upside for a trip toward $70,571; falling back through here would result in price action testing the zone of $59,800.
Short-term signals seem to confirm recovery. Bitcoin trades above the 7-day average at $64,582 and the 30-day average at $62,605. If we look at the momentum indicators, the 7-day RSI is at 64.08, and the MACD histogram is showing a value of 331.71.
However, Bitcoin is still below its 200-day average at $72,927, which means that the longer-term trend has not turned fully bullish. We have seen buyers showing up to buy dips to the low $60,000s but require buyers to push above $67,255 for confirmation of a bullish trend.
The DXY has went through a flip-flop zone
The dollar index is currently hovering around 101.116 and has given a breakout above the 100.452 mark. For the next important resistance, it is at 108.062; the key support level is 97.148.
More alarming for the bulls would be if DXY moves higher and BTC cannot break above the $67,255 mark. In such a scenario, dollar strength could be pressuring the crypto market. Bitcoin crossing resistance as DXY surges may signal sufficient demand to support a rising dollar’s impact on crypto as a whole.
Ethereum is showing the highest momentum right now
Ethereum is showing the strongest momentum among the major assets in the group. ETH trades near $1,933.98, above its 7-day average of $1,878 and 30-day average of $1,738. Its 7-day RSI stands at 68.11, close to overbought territory, while the MACD histogram remains positive at 13.00.
The $1,887 level is the pivotal short-term resistance that, if it gets broken with upside momentum, then we could expect to see $2,062 and then $2,213 as targets. At present Ethereum is looking to be outperforming the largest cryptocurrency on various short-term metrics, as the former’s trading volumes are increasing and momentum is gaining. However, the RSI of around 68 indicates that the rally might be getting overextended, and a failure to sustain above $1,887 may trigger a correction for this asset.
The other large-cap assets are highlighting mixed signals
XRP trades near $1.14, above its 7-day and 30-day averages of $1.10 and $1.09, with RSI readings showing moderate momentum and the $1.10 area acting as support while $1.14 to $1.18 remains key resistance. BNB trades near $576.42, close to its short-term averages, while RSI near 47 shows limited direction, with $569.49 as support and the 200-day average at $662.52 still far above.
At the time of writing, the leading layer 1 asset, Solana, is changing hands near $78.34, with RSI in the high 50s backing the recovery, although its negative MACD histogram at -0.29 points to weaker momentum. That leaves the asset with $79 to $83 as resistance and $74 as key support.
The volume is making Ethereum as the focused asset
Trading volume also reveals disparities between the large caps. Bitcoin has $29.96 billion in volume and Ethereum has $13.41 billion. For the other large market cap assets, Solana is changing hands with a volume of $1.94 billion, XRP $1.37 billion, and BNB $1.13 billion.
ETH, for instance, now matches its market cap with volume and thus demonstrates strong momentum along the ongoing recovery; ETH is a must to keep on your watchlist now. While Ethereum now has volume that matches its market cap, BTC still holds the top spot, though BTC faces strong resistance now; thus, its next move is quite significant for the whole space.
