Bitcoin price gathers strength as SOL, AVAX, FIL and EOS prep for a breakout

Cryptocurrency

Nonfarm payrolls rose by 209,000 in June, below economists’ expectations of an addition of 240,000 jobs. Although the figures show a cooling labor market, market observers remained concerned as the average hourly earnings growth held steady at 0.4% from May and 4.4% from a year ago. 

The report did not alter expectations of a 25 basis point rate hike by the United States Federal Reserve in the next meeting, according to the FedWatch Tool. That kept the U.S. equities markets under pressure, with all three major indices falling for the week. The S&P 500 was down 1.16% and the Nasdaq was lower by 0.92%.

Crypto market data daily view. Source: Coin360

Another minor negative for the crypto markets was a report by JPMorgan managing director Nikolaos Panigirtzoglou, which said that a spot Bitcoin (BTC) exchange-traded fund (ETF) may not prove to be a game changer for the crypto space. Panigirtzoglou cites lackluster interest in the spot Bitcoin ETFs in Canada and Europe as the reason for a possible low impact even in the U.S.

Could bulls regroup and kick Bitcoin above the overhead resistance? If they do, select altcoins could join the march higher. Let’s analyze the charts of top-5 cryptocurrencies that are showing signs of moving up.

Bitcoin price analysis

Bitcoin remains stuck between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This suggests uncertainty among the bulls and the bears about the next directional move.

BTC/USDT daily chart. Source: TradingView

The BTC/USDT pair bounced off the 20-day EMA on July 7, indicating that the bulls continue to defend the level aggressively. Buyers will again attempt to overcome the resistance at $31,500. If they succeed, the pair may start the next leg of the uptrend. The pair could first advance to $32,400 and thereafter sprint toward $40,000.

The bears are likely to have other plans. They will try to protect the overhead resistance and tug the price below the $29,500 support. If this level gives way, stops of several short-term bulls may be hit. That could sink the pair to the 50-day simple moving average ($28,101).

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is trading between $29,500 and $31,500. Generally, a tight range trading is followed by a range expansion but it is difficult to predict the direction of the breakout with certainty. Hence, it is better to wait for the price to escape the range before waging large bets.

If the price breaks above the 50-SMA, the bulls will try to drive the pair above $31,500. If they manage to do that, the pair may start a new up-move. Conversely, a tumble below $29,500 could start a correction toward $27,500.

Solana price analysis

Solana (SOL) has been trading in a large range between $15.28 and $27.12 for the past several months. The failure to sustain the price below the support of the range started an up-move that has risen above the downtrend line. This suggests that the bulls are attempting a comeback.

SOL/USDT daily chart. Source: TradingView

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 may rally to $24 and ultimately to the stiff overhead resistance of $27.12.

On the downside, $18.70 is the important support to keep an eye on. A break and close below this level may open the doors for a possible drop to the strong support zone between $16.18 and $15.28.

SOL/USDT 4-hour chart. Source: TradingView

Both moving averages are sloping up and the RSI is in the positive territory on the 4-hour chart. This suggests that the bulls are in command. However, the bears have not yet given up and have pulled the price to the 20-EMA.

If the price rebounds off the 20-EMA with strength, the bulls will make one more attempt to overcome the obstacle at $22. If they can pull it off, the pair may jump toward $24.

The first sign of weakness will be a drop below the 20-EMA. That will indicate profit-booking by the short-term bulls. 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) successfully scaled the level on July 8.

AVAX/USDT daily chart. Source: TradingView

The moving averages are close to completing a bullish crossover and the RSI has jumped into the positive territory. This suggests that bulls have an edge. The AVAX/USDT pair could rise to $16 where the bears may again mount a strong defense.

If subsequent corrections find support at the 20-day EMA ($13), it will suggest the start of an up-move toward $18. The important support to watch on the downside is $12. A break below this level may drag the price to the vital support at $10.52.

AVAX/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the price has risen above the symmetrical triangle pattern, indicating that bulls are trying to take charge. The up-move may face selling near the stiff overhead resistance of $15 but bulls are expected to buy the dips to the 20-EMA. If this support holds, the likelihood of a rally above $15 increases.

If bears want to prevent the upside, they will have to quickly yank the price below the moving averages. That may trap the aggressive bulls, resulting in long liquidation. The pair may then slide to the support line of the triangle.

Related: BlackRock ETF stirs US Bitcoin buying as research says ‘get off zero’

Filecoin price analysis

Filecoin (FIL) is trying to form an inverse head and shoulders pattern which will complete on a break and close above the neckline near $5.

FIL/USDT daily chart. Source: TradingView

The moving averages are about to complete a bullish crossover and the RSI is in the positive territory. This indicates that bulls have a slight edge. The bulls will try to drive the price to the neckline of the reversal pattern. If bulls overcome this barrier, the FIL/USDT pair may start a new up-move. The pattern target of this bullish setup is $7.30.

This positive view could invalidate in the short term if the price breaks and sustains below the moving averages. That could sink the pair to $3.5 and later to $3.

FIL/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is in a corrective phase but the buyers are trying to push the price above the moving averages. If they manage to do that, it will suggest that the correction may be over. The pair may then gradually climb toward the overhead resistance near $5.

Instead, if the price turns down from the moving averages and plummets below $4.20, it will suggest that the short-term sentiment remains negative and traders are selling on rallies. That may pull the price to $4 and subsequently to $3.60.

EOS price analysis

EOS (EOS) has been forming a higher high and higher low pattern, suggesting a potential trend change in the near term.

EOS/USDT daily chart. Source: TradingView

The 20-day EMA ($0.73) has flattened out and the RSI is near the midpoint, indicating that the selling pressure is reducing. Buyers will have to propel the price above the overhead resistance at $0.79 to indicate that the downtrend may be ending. The EOS/USDT pair could then surge toward $0.93.

Alternatively, if the price turns down from the overhead resistance, it will suggest that bears remain active at higher levels. That could keep the pair range-bound between $0.60 and $0.79 for some more time.

EOS/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been gradually moving up. If buyers kick the price above the 50-SMA, the pair may retest the overhead resistance at $0.79. If bulls overcome this barrier, the pair could soar to $0.83 and eventually to $0.90.

Contrary to this assumption, if the price turns down and breaks below the uptrend line, it will suggest that the bears are back in the driver’s seat. The pair may then slump 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 conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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