non-farm jobs rose by 209,000 in June, below economists’ expectations of adding 240,000 jobs. Although the numbers show a cooling in the labor market, market watchers remained concerned as average hourly earnings growth held steady at 0.4% from May and 4.4% from a year ago.
The report did not change expectations for a 25 basis point rate hike by the US Federal Reserve at the next meeting, according to FedWatch. a tool. This kept the US stock markets under pressure, with all three major indices drop for the week. The S&P 500 fell 1.16% and the Nasdaq fell 0.92%.
Another slight negative for the cryptocurrency markets was a report from JPMorgan managing director Nikolaos Panijirzoglou, who said that the spot foreign exchange traded fund (ETF) may not be a game-changer in the cryptocurrency space. Panegirzoglou cites weak interest in spot Bitcoin ETFs in Canada and Europe as a reason for the potential low impact even in the US.
Can the bulls regroup and kick bitcoin above the overhead resistance? If they do, select altcoins could join the rally higher. Let’s analyze the charts of the top 5 cryptocurrencies that are showing signs of bullishness.
Bitcoin price analysis
Bitcoin is still stuck between the 20-day exponential moving average ($29,854) and the general resistance at $31,000. This indicates uncertainty between the buyers and the bears about the next directional move.
The BTC/USDT pair rebounded from the 20-day moving average on July 7, indicating that the bulls continue to defend the level aggressively. Buyers will again try to overcome the $31,500 resistance. If they succeed, the pair may start the next stage of the upward trend. The pair could advance first to $32,400, and then advance towards $40,000.
The bears likely had other plans. They will try to protect the overhead resistance and drag the price below the $29,500 support. If this level fades, many short-term bulls’ stops may be hit. This could lead the pair to drop to the 50-day simple moving average ($28,101).
The 4-hour chart shows that the pair is trading between $29,500 and $31,500. In general, trading is in a narrow range followed by an expansion of the range but it is difficult to predict the direction of the breakout with certainty. Hence, it is best to wait for the price to break out of the range before making big bets.
If the price breaks above the 50-SMA, the bulls will try to push the pair above $31,500. If they manage to do so, the pair may start a new upward movement. On the contrary, a dip below $29,500 could start a correction towards $27,500.
Solana price analysis
Solana (SOL) has been trading in a wide range between $15.28 and $27.12 over the past several months. The failure to hold the price below the range support initiated an upward movement that rose above the downtrend line. This indicates that the bulls are trying to make a comeback.
The moving averages have completed a bullish crossover and the RSI is near the overbought territory, indicating that the path of least resistance is to the upside. There is a minor resistance at $22 but if this level is crossed, the SOL/USDT pair could rise to $24 and eventually to the severe overhead resistance at $27.12.
On the downside, $18.70 is the important support to watch. A break and close below this level might open the door to a possible drop to the strong support area between $16.18 and $15.28.
Both the moving averages and the RSI are sloped upwards in the positive territory on the 4-hour chart. This indicates that the bulls are in command. However, the bears did not give up yet and dragged the price to the 20-EMA.
If the price bounces off the 20-EMA strongly, the bulls will make another attempt to overcome the hurdle at $22. If they can pull it back, the pair could jump towards $24.
The first sign of weakness would be a drop below the 20-EMA. This would indicate profit taking by the bulls in the short term. The pair may 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 climb the level on July 8.
The moving averages are close to completing the bullish crossover and the RSI has jumped into the positive territory. This indicates that the bulls have an advantage. AVAX/USDT could rally to $16 as the bears may once again build up a 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 important support to watch on the downside is $12. A break below this level could push the price to the vital support at $10.52.
The 4-hour chart is showing that the price has risen above the symmetrical triangle pattern, which indicates that the bulls are trying to take over. The bulls could face selling near the severe overhead resistance at $15, but the bulls are expected to buy on dips to the 20-EMA. If this support holds, the probability of a rally above $15 increases.
If the bears want to prevent an uptrend, they will have to quickly pull the price below the moving averages. This may ensnare aggressive bulls, resulting in a long liquidation. After that, the pair may slide to the triangle support line.
Related: BlackRock ETF Sparks US Bitcoin Buys as ‘Stay Away From Zero’ Research Says
Filecoin price analysis
Filecoin (FIL) is attempting to form an inverted head and shoulders pattern that will complete on the breakout and close above the neckline near $5.
The moving averages are about to complete a bullish crossover and the RSI is in the positive territory. This indicates that the bulls have a slight advantage. The bulls will try to push the price to the neckline of the reversal pattern. If the bulls overcome this barrier, the FIL/USDT pair may start a new upward movement. The pattern target for this bullish setup is $7.30.
This positive view may be invalidated in the short term if the price breaks and continues below the moving averages. This could take the pair down to $3.5 and later to $3.
The 4 hours chart is showing that the pair is in a corrective phase but the buyers are trying to push the price above the moving averages. If they were able to do so, it would indicate that the patch might be over. After that, the pair may gradually rise towards the overhead resistance near $5.
Alternatively, if the price breaks away from the moving averages and drops below $4.20, it would indicate that the short-term sentiment remains negative and traders are selling on rallies. This could push the price to $4 and later to $3.60.
EOS price analysis
EOS (EOS) is forming a high-low pattern, indicating a possible trend change in the near term.
The 20-day moving average ($0.73) has flattened and the RSI has approached its midpoint, indicating that selling pressure is fading. Buyers would have to push the price above the general resistance at $0.79 to indicate that the downtrend might be over. EOS/USDT could then rally towards $0.93.
Alternatively, if the price falls from the overhead resistance, it will indicate that the bears remain active at higher levels. This pair could stay in a range between $0.60 and $0.79 for some time.
The 4-hour chart is showing that the pair is moving upwards gradually. If buyers push the price above the 50-SMA, the pair could retest the general resistance at $0.79. If the bulls overcome this barrier, the pair could rise to $0.83 and eventually to $0.90.
Contrary to this assumption, if the price falls and breaks below the uptrend line, it will signal that the bears are back in the driving seat. The pair may then drop to $0.67 and later to $0.64.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.