US jobs data on August 5 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. After the release, the probability of a 75 basis point increase in September rose to 68%, according to data from CME Group.
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.
View daily crypto market data. Source: Coin360
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. The material indicators of the cross-chain monitoring resource said in an update on Twitter on August 5 that if Bitcoin (BTC) rises above $25,000, there is not much resistance until the $26,000-$28,000 range.
Could Bitcoin Climb Above Overhead Resistance And Extend Its Recovery, Pulling Specific Altcoins Higher? Let’s study the charts of the top 5 cryptocurrencies that might outperform in the near term.
BTC / USDT
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 held the level, they were unable to make a strong bounce from it. This indicates a lack of demand at higher levels.
BTC/USDT daily chart. Source: TradingView
Both moving averages have flattened and the Relative Strength Index (RSI) is slightly above their mid-point, indicating a balance between buyers and sellers. The advantage could tilt in favor of buyers if they push the price and it stays above $24668.
If they manage to do so, the BTC/USDT pair 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). If this support gives way as well, the next stop could be the uptrend line.
4 hour BTC/USDT chart. Source: TradingView
The price is stuck between $22,400 and $23,648 on the 4-hour chart. Both moving averages have flattened and the RSI is near their midpoint, indicating 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. After that, the pair may fall to the ascending trend line, which can act as a strong support.
Flow / USDT
FLOW trading narrow range to the upside resolved with range expansion on August 4th. This indicates accumulation at lower levels and the start of a new upward movement.
FLOW/USDT daily chart. Source: TradingView
The bears are trying to stop the bullish move 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) has started to rise, and the RSI is near the overbought zone, indicating that the bulls have the upper hand. If buyers push the price above the $3 to $3.30 resistance area, the USD/CAD pair could gain momentum and move higher towards $4.60.
FLOW/USDT 4-hour chart. Source: TradingView
The pair fell from the upper resistance near $3, but is finding support at the 20-EMA 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 uptrend.
Alternatively, if the price breaks below the 20-EMA, 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 bring the pair down to $2.