AMERICA jobs data on Aug. 5 was above market expectations, indicating that inflation have not cooled off. The strong numbers decrease the possibility that the U.S. Federal Reserve will decelerate its aggressive pace of rate hikes. Following the release, the probability of a 75 basis points hike in September has increased to 68%, in accordance with CME Group data.
However, analysts at Fundstrat Global Advisors have another view. They highlighted that three out of six times, the S&P 500 bottomed out half a year prior to the Feds last rate hike. Therefore, the firm anticipates the S&P 500 to witness a solid rally to 4,800 in the next half of the entire year.
If the tight correlation between your equities markets and the cryptocurrency markets maintain, the recovery in the crypto markets could have even more room to perform. On-chain monitoring resource Material Indicators said in a Twitter update on Aug. 5 that when Bitcoin (BTC) rises above $25,000, there’s no major resistance till the $26,000 to $28,000 range.
Could Bitcoin climb above the overhead resistance and extend its recovery, pulling select altcoins higher? Lets study the charts of the top-5 cryptocurrencies that could outperform in the near term.
Bitcoin has been trading near to the 20-day exponential moving average ($22,719) for recent days, indicating a hardcore battle between your bulls and the bears. Even though bulls have held the particular level, they will have not had the opportunity to achieve a solid rebound off it. This means that too little demand at higher levels.
Both moving averages have flattened out and the relative strength index (RSI) is merely above the midpoint, indicating a balance between buyers and sellers. The benefit could tilt and only the buyers should they push and sustain the purchase price above $24,668.
Should they manage to do this, the BTC/USDT pair could rally to $28,000 and to another overhead resistance at $32,000.
Unlike this assumption, if bears pull the purchase price below the 20-day EMA, the pair could decline to the 50-day simple moving average ($21,719). If this support also gives way, another stop may be the uptrend line.
The purchase price is stuck between $22,400 and $23,648 on the 4-hour chart. Both moving averages have flattened out and the RSI is close to the midpoint, indicating a balance between supply and demand. If bulls drive the purchase price above $23,648, the pair could rise to the overhead resistance at $24,668.
Conversely, if the purchase price turns down and breaks below $22,400, it’ll tilt the short-term advantage and only the bears. The pair could then decline to the uptrend line, that could act as a solid support.
The tight range trading in Flow (FLOW) resolved to the upside with the number expansion on Aug. 4. This means that accumulation at lower levels and the beginning of a fresh up-move.
The bears are trying to stall the up-move near $3 but a positive is that the bulls haven’t abandoned much ground. This means that that traders aren’t hurrying to book profits following the recent rally.
The 20-day EMA ($2.07) has began to arrive and the RSI is close to the overbought zone, indicating that bulls have top of the hand. If buyers drive the purchase price above the $3 to $3.30 resistance zone, the FLOW/USDT pair could grab momentum and rally toward $4.60.
The pair has rejected from the overhead resistance near $3 but is finding support at the 20-EMA on the 4-hour chart. If bulls push the purchase price above $2.80, the pair could retest the overhead resistance at $2.99. A rest above this level could signal the resumption of the uptrend.
Alternatively, if the purchase price slips below the 20-EMA, the pair could drop to the 50% Fibonacci retracement degree of $2.41, and to the 61.8% retracement degree of $2.27. A rest below this level could tilt the benefit and only the bears and sink the pair to $2.
Theta Network (THETA) broke and closed above the stiff overhead resistance at $1.55 on Aug. 5, indicating that the number had resolved and only the bulls. The bears tried to sink the purchase price back below the breakout level on Aug. 6 however the bulls held their ground.
The 20-day EMA ($1.39) has began to arrive and the RSI is in the positive territory, indicating advantage to buyers. If bulls sustain the purchase price above $1.65, the THETA/USDT pair could take up a new uptrend toward the pattern target of $2.10. This level may pose a solid challenge but if bulls clear this overhead hurdle, the pair could extend its rally to $2.60.
To invalidate this positive view, the bears will need to pull and sustain the purchase price below $1.55. If that occurs, the aggressive bulls gets trapped and the pair could slide to the moving averages.
The 4-hour chart implies that the bulls purchased the dip to the 20-EMA, indicating buying on dips. Both moving averages on the 4-hour chart are sloping up and the RSI is close to the overbought territory, indicating that the road of least resistance would be to the upside. If bulls keep up with the price above $1.65, the up-move may resume.
The initial sign of weakness is a break and close below the 20-EMA. If that occurs, the pair could drop to the 50-SMA. The bears will need to sink the purchase price below this level to signal that the uptrend could have ended in the near term.
Quant (QNT) made a solid recovery from its intraday low of $40 made on June 13. The bears tried to stall the up-move at $115 however the bulls aggressively purchased the dip below the 20-day EMA ($103) on July 26.
The bulls maintained their momentum and pushed the purchase price above the overhead resistance at $115 on Aug. 6. This indicated the resumption of the uptrend. The QNT/USDT pair could rally to the overhead resistance zone between $154 to $162 where in fact the bears may mount a solid defense.
Alternatively, if the purchase price turns down from the existing level, the bulls will try to flip the $115 level into support. If that occurs, the pair could resume its uptrend. The bears will need to sink and sustain the purchase price below the 20-day EMA to get top of the hand.
The pair is within an uptrend however the RSI on the 4-hour chart jumped in to the overbought territory, indicating the chance of a near-term correction. The bulls are anticipated to get the dips to the 20-EMA. Should they do that, it’ll claim that the sentiment remains positive and traders are buying on dips. Which will increase the probability of the resumption of the uptrend.
On the other hand, if the purchase price turns down from the existing level and breaks below the 20-EMA, the pair could slide to the 50-SMA. That is a significant level to help keep a watch on just because a break below it might create a fall to $100.
Makers (MKR) recovery is facing stiff resistance near $1,100 but a confident sign is that the bulls haven’t allowed the purchase price to dip below the 20-day EMA ($1,044).
The moving averages are sloping up and the RSI is in the positive territory, indicating that buyers have top of the hand.
If bulls push and sustain the purchase price above the overhead resistance zone between $1,100 and $1,188, the MKR/USDT pair could rally to $1,400 and to the pattern target of $1,570. This type of move will claim that the pair could have bottomed out.
Unlike this assumption, if the purchase price turns down from the overhead resistance and breaks below the 20-day EMA, the pair could slide to the trendline. A rest and close below this level will invalidate the bullish setup.
The pair has formed a symmetrical triangle on the 4-hour chart. The 20-EMA is sloping up gradually and the RSI is in the positive zone, indicating hook advantage to the bulls.
If buyers drive the purchase price above the resistance line, the pair could rally to the overhead resistance at $1,188. A rest and close above this level could indicate the resumption of the uptrend.
Conversely, a rest below the support type of the triangle could tilt the benefit and only the sellers. The pair could then decline to the psychological level at $1,000.
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