In this digital age, ensuring the security of digital data, especially the image data is critically important. Image encryption plays an important role in securing the online transmission/storage of images from unauthorized access. In this regard, this paper presents a novel diffusion-confusion-based image encryption algorithm named as X-CROSS. The diffusion phase involves a dual-layer block permutation. It involves a bit-level permutation termed Inter-Bit Transference (IBT) using a Bit-Extraction key, and pixel permutation with a unique X-crosspermutation algorithm to effectively scramble the pixels within an image. The proposed algorithm utilizes a resilient 2D chaotic map with non-linear dynamical behavior, assisting in generating complex Extraction Keys. After the permutation phase, the confusion phase proceeds with a dynamic substitution technique on the permuted images, establishing the final encryption layer. This combination of novel permutation and confusion results in the removal of the image's inherent patterns and increases its resistance to cyber-attacks. The close to ideal statistical security results for information entropy, correlation, homogeneity, contrast, and energy validate the proposed scheme's effectiveness in hiding the information within the image.