According to market expectations, the August 5th U.S. jobs data was higher than expected. This indicates that inflation has not fallen. These numbers make it less likely that the U.S. Federal Reserve slows down its aggressive rate of rate increases. According to CME Group data, the probability of a 75-basis point hike in September has increased to 68% after the release.
Fundstrat Global Advisors analysts have a different opinion. Fundstrat Global Advisors’ analysts noted that the S&P 500 had bottomed six months prior to the Fed’s last rate increase. According to the firm, the S&P 500 will see a strong rally to 4,800 during the second half.
Daily view of crypto market data. Source:Coin360
The tight correlation between the equities and cryptocurrency markets could allow for a more rapid recovery of the crypto markets. Material Indicators, an on-chain monitoring resource, stated in a Twitter update of Aug. 5, that Bitcoin (BTC), if it rises above $25,000 there will be no resistance until the $26,000 to $28,000 area.
Is Bitcoin able to climb above the overhead resistance, extending its recovery, and pulling selected altcoins higher. Let’s look at the charts of top five cryptocurrencies that could outperform in near future.
Bitcoin traded close to the 20 day exponential moving average ($22719) over the last few days. This indicates a difficult battle between the bears and bulls. The bulls have managed to maintain the level but have not managed to rebound strongly from it. This suggests that there is not enough demand for higher levels.
Daily chart of BTC/USDT Source: TradingView
Both moving averages have converged and the relative strength indicator (RSI), is just above its midpoint. This indicates that there is a balance between sellers and buyers. If buyers push for a price increase above $24,668, the advantage could shift in their favor.
If they can do so, the BTC/USDT pairing could rally to $28,000 before moving on to the next overhead resistance at 32,000.
Contrary to what is being assumed, if bears push the price below the 20 day EMA, the pair may fall to the 50-day simple move average ($21,719). The next stop may be the uptrend line if this support is also broken.
BTC/USDT 4-hour chart. TradingView
On the 4-hour chart, the price is between $22,400 to $23,648. Both moving averages have remained flattened and the RSI is close to the midpoint. This indicates a balance between supply/demand. The pair could reach the overhead resistance of $24,668 if bulls push the price higher than $23,648.
However, bears will win the short-term advantage if the price falls below $22,400. This could lead to a decline in the pair towards the uptrend line. It could serve as strong support.
The tight trading range in Flow (FLOW), which was resolved by the range expansion of Aug. 4, turned to the upside. This is a sign of accumulation at lower levels, and the beginning of a new up-move.
Daily chart of FLOW/USDT Source: TradingView
Although the bears are trying to stop the rally near $3, a minor plus is that the bulls are not losing much ground. This shows that traders aren’t rushing to make profits following the rally.
The 20-day EMA ($2.07) is starting to rise and the RSI nears the overbought area, indicating that bulls are in control. The FLOW/USDT pair may gain momentum if buyers push the price higher than the $3.30 to $3.30 resistance zone. This could lead to a rally towards $4.60.
FLOW/USDT 4-hour chart. TradingView
Although the overhead resistance at $3 has been broken, the pair is now finding support at the 20EMA on the 4-hour chart. The overhead resistance of $2.99 could be retested if bulls push the price higher than $2.80. Breaking above this level could signify the resumption or continuation of the uptrend.
If the price falls below the 20EMA, the pair may fall to the 50% Fibonacci retracement level at $2.41 and then to $2.27 at the 61.8% retracement levels of $2.27. A fall below this level could swing the favor of bears and send the pair down to $2.
Theta Network (THETA), broke and closed above stiff overhead resistance at $1.55, on Aug. 5. This indicated that the range had settled in favor of bulls. The bulls held firm despite the bears trying to lower the price below the Aug. 6 breakout level.
Daily chart THETA/USDT Source: TradingView
The 20-day EMA ($1.39) is starting to rise and the RSI has moved into the positive territory. This indicates that buyers have an advantage. The THETA/USDT currency pair could begin a new uptrend towards the $2.10 pattern target if bulls can keep the price above $1.65. Although this level can be a challenge, bulls could overcome it and extend their rally to $2.60.
To discredit this positive view, bears must pull back and maintain the price below $1.55. The bulls could get trapped and the pair could slip to the moving averages if that happens.
THETA/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the bulls bought the dip to the 20EMA. This indicates buying on dips. The 4-hour chart shows that both moving averages are moving up, and that the RSI is in the overbought territory. This indicates that the path to the upside is the most likely. The up-move could resume if bulls keep the price above $1.65.
A break below the 20-EMA will signal weakness. The pair could fall to the 50 SMA if that happens. To signal an end to the uptrend, the bears will need to lower the price below the 50-SMA.
Related: What is Chainlink VRF? How does it work?
Quant (QNT), made a strong recovery after its June 13 intraday low of $40. The bears attempted to halt the up-move at $115, but the bulls aggressively bought the dip below the 20 day EMA ($103 on July 26).
Daily chart QNT/USDT Source: TradingView
Bulls kept their momentum and drove the price higher than the overhead resistance of $115 on August 6. This signaled the resumption the uptrend. The QNT/USDT could rally to the overhead resistance zone of $154 to $162, where bears might mount a strong defense.
The bulls could also attempt to turn the $115 support level into support if the price falls below the current level. The pair could resume its upward trend if that happens. To gain the upper hand, the bears must sink below the 20-day EMA and maintain it there.
QNT/USDT 4-hour chart. Source: TradingView
Although the pair is currently in an uptrend, the RSI at the 4-hour chart jumped to the overbought territory. This indicates that there may be a correction within the near term. Bulls will likely buy dips below the 20-EMA. This will indicate that traders are buying dips and that sentiment is positive. This will increase the chances of the resumption or continuation of the uptrend.
The reverse could happen. If the price falls below the 20-EMA and the pair breaks below it, the pair may slide to the 50 SMA. It is important to watch this level as a fall below it could lead to a drop to $100.
Maker’s (MKR), recovery is currently facing strong resistance near $1100, but a positive sign that the bulls have not allowed price to drop below the 20-day EMA ($1,044) is a positive sign.
Daily chart of MKR/USDT Source: TradingView
The moving averages are increasing and the RSI is positive, indicating buyers have the upper hand.
Bulls should push the price higher than the overhead resistance zone of $1,100 to $1,188 to maintain the pair’s momentum. The MKR/USDT could rise to $1,400 before reaching the pattern target at $1,570. This would indicate that the pair has reached its bottom.
Contrary to popular belief, a fall below the overhead resistance or the 20-day EMA could cause the price to slide towards the trendline. The bullish setup will be invalidated if the price breaks or closes below this level.
MKR/USDT 4-hour chart. Source: TradingView
On the 4-hour chart, the pair formed a triangle-shaped pattern. The 20-EMA is gradually increasing in slope and the RSI is in positive territory, indicating a slight advantage for the bulls.
The overhead resistance at $1.188 could be reached if buyers push the price higher than the resistance line. The resumption or acceleration of the uptrend could be indicated by a break and close above the resistance level.
A break below the support level of the triangle could flip the balance in the sellers’ favor. The psychological level of $1,000 could see the pair fall.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.