Nonfarm payrolls rose by 209,000 in June, falling short of economists’ expectations of 240,000 new jobs. Although the numbers point to a slowdown in the job market, market watchers remained worried as average hourly wage growth was steady at 0.4% from May and 4.4% from a year earlier.
According to the FedWatch Tool, the report did not change expectations of a 25 basis point rate hike by the US Federal Reserve at the next meeting. This kept US stock markets under pressure and all three major indices fell this week. The S&P 500 lost 1.16% and the Nasdaq lost 0.92%.
Daily view of crypto market data. Source: Coin360
Another minor negative point for the crypto markets was a report from JPMorgan CEO Nikolaos Panigirtzoglou stating that a spot bitcoin (BTC) exchange traded fund (ETF) may not prove to be a game changer for the crypto space. Panigirtzoglou cites weak interest in spot bitcoin ETFs in Canada and Europe as a reason for the potentially small impact even in the US
Could the bulls regroup and push Bitcoin above the upper resistance? If so, select altcoins could join the uptrend. Let’s analyze the charts of the top 5 cryptocurrencies that are showing signs of rising.
Bitcoin price analysis
Bitcoin is stuck between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This indicates uncertainty among the bulls and bears regarding the next directional move.
BTC/USDT daily chart. Source: TradingView
The BTC/USDT pair rebounded from the 20-day EMA on July 7, suggesting that the bulls will continue to defend this level aggressively. Buyers will try again to clear the $31,500 resistance. If they succeed, the pair could start the next leg of the uptrend. The pair could initially scale to $32,400 and then sprint towards $40,000.
The bears may have other plans. They will attempt to protect the upper resistance and push the price below the $29,500 support. If this level gives way, stops from several short-term bulls could be hit. That could sink the pair to the 50-day simple moving average ($28,101).
BTC/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows the pair trading between $29,500 and $31,500. Generally, trading in a tight range is followed by a widening of the range, however, it is difficult to predict the direction of the breakout with certainty. Therefore, it is better to wait for the price to exit the range before making big bets.
If the price breaks the 50-SMA, the bulls will attempt to push the pair above $31,500. If they succeed, the pair could start a new uptrend. Conversely, a break below $29,500 could trigger a correction towards $27,500.
Solana price analysis
Solana (SOL) has been trading in a wide range between $15.28 and $27.12 for the past few months. Failure to sustain the price below the support range triggered an upward move that broke above the downtrend line. This suggests that the bulls are attempting a comeback.
SOL/USDT daily chart. Source: TradingView
The moving averages have completed a bullish crossover and the RSI is near the overbought territory, suggesting that the path of least resistance is up. There is a minor resistance at $22, but if that level is breached the SOL/USDT pair could rally to $24 and eventually the strong overhead resistance of $27.12.
On the upside, $18.70 is the key support to watch for. A break and close below this level could open the door for a possible drop to the strong $16.18-$15.28 support zone.
SOL/USDT 4 hour chart. Source: TradingView
Both the moving averages are sloping up and the 4 hour chart’s RSI is in positive territory. This suggests that the bulls are in charge. However, the bears have not given up yet and have dragged the price to the 20-EMA.
If the price rebounds strongly from the 20-EMA, the bulls will make another attempt to clear the $22 obstacle. If they succeed, the pair could surge towards $24.
The first sign of weakness will be a drop below the 20 EMA. This suggests that the short-term bulls are booking gains. The pair could then slide to the 50-SMA.
Avalanche price analysis
After struggling near the 50-day SMA ($12.99) for several days, Avalanche (AVAX) managed to successfully scale this level on July 8.
AVAX/USDT daily chart. Source: TradingView
The moving averages are about to complete a bullish crossover and the RSI has jumped into positive territory. This suggests that bulls have an advantage. The AVAX/USDT pair could rally to $16 where the bears could mount another strong defense.
If subsequent corrections find support at the 20-day EMA ($13), it will signal the start of an upward move towards $18. The key support to watch on the downside is $12. A break below this level could push the price down to the key support at $10.52.
AVAX/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the price has surged above the symmetrical triangle pattern, which indicates that the bulls are attempting to take the lead. The upside could face selling near the strong overhead resistance of $15, but the bulls are expected to buy the dips to the 20-EMA. If this support holds, the likelihood of a rally above $15 increases.
If bears want to prevent the uptrend, they need to push the price below the moving averages quickly. That could trap the aggressive bulls and lead to long-term liquidation. The pair can then slide to the support line of the triangle.
Related: BlackRock ETF Stimulates US Bitcoin Buys as Research Says “Getting From Zero”
Filecoin price analysis
Filecoin (FIL) is attempting to form an inverse head and shoulders pattern that will complete on a break and close above the neckline near $5.
FIL/USDT daily chart. Source: TradingView
The moving averages are about to complete a bullish crossover and the RSI is in positive territory. This suggests that the bulls have a slight lead. The bulls will try to push the price up to the neckline of the reversal pattern. If the bulls clear this barrier, the FIL/USDT pair could start a new uptrend. The pattern target of this bullish setup is $7.30.
This bullish view could be invalidated in the short-term if the price falls below the moving averages and stays there. That could sink the pair to $3.5 and later to $3.
FIL/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the pair is in a corrective phase, however, buyers are attempting to push the price above the moving averages. If they succeed, it indicates that the correction may have ended. The pair might then gradually climb towards the upper resistance near the $5 level.
If the price instead breaks away from the moving averages and falls below $4.20, it will suggest that near-term sentiment remains negative and traders are selling on rallies. That could take the price to $4 and then $3.60.
EOS price analysis
EOS (EOS) has formed a higher high and higher low pattern, suggesting a possible trend reversal in the near future.
EOS/USDT daily chart. Source: TradingView
The 20-day EMA ($0.73) has flattened out and the RSI is near the midpoint, suggesting that selling pressure is easing. Buyers need to push the price above the upper resistance at $0.79 to indicate the downtrend may end. The EOS/USDT pair could then surge towards $0.93.
Alternatively, if the price breaks away from the overhead resistance, it will suggest that the bears remain active at higher levels. This could keep the pair in the range between $0.60 and $0.79 for some time.
EOS/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows the pair gradually moving higher. If buyers push the price above the 50-SMA, the pair could retest the overhead resistance at $0.79. If the bulls scale this barrier, the pair could rally to $0.83 and eventually $0.90.
Contrary to this assumption, if the price turns down and breaks below the uptrend line, it will indicate that the bears are back in charge. The pair could then drop to $0.67 and later to $0.64.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.
This article is provided for general informational purposes and is not intended and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect the views and opinions of Cointelegraph.
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