US jobs data on August 5th was above market expectations, indicating that inflation has not abated. The strong numbers reduce the likelihood that the US Federal Reserve will slow its sharp pace of rate hikes. According to CME Group data, after the release, the probability of a 75 basis point increase in September rose to 68%.
However, analysts at Fundstrat Global Advisors have a different view. They highlighted that three out of six times, the S&P 500 bottomed six months before the Fed’s latest rate hike. Therefore, the company expects the S&P 500 to see a strong rise to 4800 in the second half of the year.
And if the tight correlation between the stock markets and the cryptocurrency markets continues, the recovery in the cryptocurrency markets may have more room to run. Material indicators for the cross-chain monitoring resource said in an August 5 Twitter update that if Bitcoin (BTC) rises above $25,000, there is not much resistance until the $26,000-$28,000 range.
Could Bitcoin Climb Over Overhead Resistance And Extend Its Recovery, Pulling Certain Altcoins Higher? Let’s study the charts of the top 5 cryptocurrencies that might outperform in the near term.
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Bitcoin currency pair against the US dollar
Bitcoin has been trading near the 20-day exponential moving average ($22,719) over the past few days, indicating a tough battle between the bulls and the bears. Although the bulls maintained the level, they were not able to make a strong bounce from it. This indicates a lack of demand at higher levels.
Also, both moving averages have flattened and the RSI is slightly above their midpoint, indicating a balance between buyers and sellers. The advantage could also tilt in favor of buyers if they push the price and it stays above $24668.
If they can do that, BTC/USD could rise to $28,000 and then to the next general resistance at $32,000.
Contrary to this assumption, if the bears pull the price below the 20-day moving average, the pair could drop to the 50-day simple moving average ($21,719). And if this support gives way as well, the next stop may be the uptrend line.
Also, the price is stuck between $22,400 and $23,648 on the 4-hour chart. Also, both moving averages have flattened and the RSI is near their midpoint, indicating that there is a balance between supply and demand. If the bulls push the price above $23,648, the pair could rise to the general resistance at $24,668.
Conversely, if the price falls below $22,400, it will tilt the short-term advantage in favor of the bears. The pair may then fall to the ascending trend line, which can act as a strong support.
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Currency pair Flo against the US dollar
The narrow range trading in FLOW has been resolved to the upside as the range expanded on August 4th. This indicates accumulation at lower levels and the start of a new upward movement.
The bears are also trying to stop the upward movement near $3, but the small positive is that the bulls haven’t given up a lot of ground. This indicates that traders are not in a rush to take profits after the recent rally.
The 20-day moving average ($2.07) is starting to rise, and the RSI is near the overbought zone, indicating that the bulls are gaining the upper hand. And if buyers push the price above the $3 to $3.30 resistance area, FLOW/USD could gain momentum and rise towards $4.60.
The pair fell from upper resistance near $3, but is finding support at the 20 SMA on the 4-hour chart. If the bulls push the price above $2.80, the pair could retest the upper resistance at $2.99. A break above this level could signal a resumption of the upward trend.
Alternatively, if the price breaks below the 20 SMA, the pair could drop to the 50% Fib retracement level at $2.41, and then to the 61.8% retracement level at $2.27. A break below this level could tilt the advantage in favor of the bears and take the pair down to $2.
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Theta currency pair against the US dollar
Theta network broke and closed above the strong resistance at $1.55 on August 5, indicating that the range has been resolved in favor of the bulls. The bears attempted to sink the price back below the August 6 breakout level, but the bulls held their own.
The 20-day moving average ($1.39) has started to rise, and the RSI is in positive territory, indicating a buyers advantage. And if the bulls maintain the price above $1.65, theta USDUSD may start a new bullish trend towards the pattern target at $2.10. This level could pose a strong challenge but if the bulls breach this upper barrier, the pair may extend its rally to $2.60.
To negate this positive opinion, the bears will have to pull the price and hold it below $1.55. If that happens, the aggressive bulls may get caught up and the pair may slip into the moving averages.
The 4 hour chart shows that the bulls bought the dip to the 20 moving average, indicating a buy on dips. Both the 4 hour chart’s moving averages and the RSI are sloping up near the overbought territory, indicating that the path of least resistance is to the upside. If the bulls maintain the price above $1.65, the upward movement may resume.
The first sign of weakness will be a breakout and a close below the 20 SMA. If that happens, the pair may fall to the 50 SMA. The bears will have to plunge the price below this level to signal that the uptrend may have ended in the near term .
Currency pair quant against US dollar
Quant (QNT) made a strong recovery from the intraday low of $40 on June 13. The bears tried to stop the upward move at $115 but the bulls bought the dip below the 20-day moving average ($103) on July 26.
The bulls maintained their momentum and pushed the price above the overhead resistance at $115 on August 6th. This indicates a resumption of the upward trend. The Quant against the US dollar could also rise to the upper resistance zone between $154 and $162 as the bears may build a strong defense.
Alternatively, if the price falls below the current level, the bulls will attempt to turn the $115 level into support. If this happens, the pair may resume its upward trend. The bears will also have to sink and hold the price below the 20 day moving average to gain the upper hand.
The pair is moving in an upward direction, but the RSI on the 4-hour chart has jumped into the overbought territory, indicating the possibility of a correction in the near term. The bulls are expected to buy on dips to the SMA 20. If they do, it will indicate that sentiment is still positive and that traders are buying on dips. This will increase the possibility of resuming the upward trend.
Conversely, if the price falls below the current level and breaks below the 20 SMA, the pair may slip to the 50 SMA. This is an important level to watch because a break below it could lead to a drop to $100.
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Forex currency pair against the US dollar
The Meeker recovery (MKR) faces heavy resistance near $1,100, but a positive sign is that the bulls have not allowed the price to dip below the 20-day EMA ($1044).
The moving averages are sloping up and the RSI is in the positive territory, indicating that the buyers have the upper hand.
And if the bulls push the price above the upper resistance area between $1100 and $1188 and hold it, the MAICUSD pair could rise to $1400 and then to the pattern target of $1,570. This movement will indicate that the pair may have bottomed.
Contrary to this assumption, if the price drops from the upper resistance and breaks below the 20 day EMA, the pair may slide into the trend line. A breakout and a close below this level will invalidate the bullish setup.
This pair has formed a symmetrical triangle on the 4 hour chart. The 20 SMA is gradually sloping and the RSI is in the positive territory, indicating a slight advantage for the bulls.
And if buyers push the price above the resistance line, the pair could rise to the upper resistance at $1,188. A breakout and a close above this level may indicate a resumption of the upward trend.
Conversely, a breakout of the support line of the triangle can tilt the advantage in favor of the sellers. After that, the pair could also drop to the psychological level of $1,000.