The recent nonfarm payrolls report showed a cooling labor market, causing concern among market observers. However, the report did not alter expectations of a rate hike by the United States Federal Reserve. This, along with a report stating that a spot Bitcoin exchange-traded fund (ETF) may not be a game changer for the crypto space, has put pressure on the U.S. equities markets and the crypto markets. Despite these challenges, Bitcoin and several other top cryptocurrencies are showing signs of moving up. In this article, we will analyze the charts of these cryptocurrencies and discuss the potential for a bullish trend.
Bitcoin is currently stuck between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This indicates uncertainty among both bulls and bears about the next directional move. However, the BTC/USDT pair recently bounced off the 20-day EMA, suggesting that the bulls are aggressively defending this level. If buyers succeed in overcoming the resistance at $31,500, the pair may start a new uptrend, with potential targets at $32,400 and $40,000. On the other hand, if bears manage to pull the price below the $29,500 support, the pair could drop to the 50-day simple moving average ($28,101).
Solana (SOL) has been trading within a range between $15.28 and $27.12 for several months. However, the recent failure to sustain the price below the range support has initiated an up-move, breaking above the downtrend line. This suggests that bulls are attempting a comeback. The moving averages have also completed a bullish crossover, and the RSI is near the overbought territory, indicating the path of least resistance is to the upside. If SOL/USDT crosses the minor resistance at $22, it may rally to $24 and potentially reach the stiff overhead resistance of $27.12. The important support to watch on the downside is $18.70, as a break below this level could open the doors for a possible drop.
Avalanche Analysis
After struggling near the 50-day SMA ($12.99) for several days, Avalanche (AVAX) successfully scaled this level on July 8. Currently, the moving averages are close to completing a bullish crossover, and the RSI has entered the positive territory. These indicators suggest that bulls have an edge. If subsequent corrections find support at the 20-day EMA ($13), it could indicate the start of an up-move toward $18. On the downside, the important support to watch is $12, as a break below this level may drag the price to the vital support at $10.52.
Filecoin (FIL) is attempting to form an inverse head and shoulders pattern, which would complete on a break and close above the neckline near $5. The moving averages are also about to complete a bullish crossover, and the RSI is in positive territory, indicating a slight edge for bulls. If the FIL/USDT pair overcomes the neckline barrier, it may start a new up-move with a target of $7.30. However, a break below the moving averages could invalidate this positive view and potentially lead to a drop to $3.50 and later to $3.
EOS has been forming a higher high and higher low pattern, suggesting a potential trend change in the near term. The 20-day EMA ($0.73) has flattened out and the RSI is near the midpoint, indicating reduced selling pressure. If buyers can propel the price above the overhead resistance at $0.79, it would indicate the potential end of the downtrend, with a possible surge toward $0.93. However, if the price turns down from the overhead resistance, the pair may remain range-bound between $0.60 and $0.79.
Despite concerns about the cooling labor market and the potential impact of a spot Bitcoin ETF, several top cryptocurrencies are showing signs of moving up. Bitcoin has the potential to start a new uptrend if it overcomes the resistance at $31,500, while Solana, Avalanche, Filecoin, and EOS also show bullish indicators on their respective charts. As always, it is important for traders and investors to carefully analyze the market conditions and consider the potential risks before making any trading decisions.
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