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

nonfarm payrolls data Rose Employment rose by 209,000 in June, below economists’ expectations for an increase of 240,000. Market watchers remained concerned despite the data showing a cooling in the labor market, as average hourly earnings growth held steady at 0.4% from May and 4.4% from a year earlier.

FedWatch said the report did not change expectations for a 25 basis point rate hike at the Fed’s next meeting tool.That weighed on U.S. stocks, with all three major indexes falling come down for the week. The S&P 500 fell 1.16%, and the Nasdaq lost 0.92%.

Cryptocurrency market data viewed daily. source: Coin 360

Another minor negative for the cryptocurrency market was a report from JPMorgan Chase & Co. managing director Nikolaos Panigirtzoglou, which stated that a spot bitcoin (BTC) exchange-traded fund (ETF) might not be a game-changer in the cryptocurrency space. Panigirtzoglou points to subdued interest in spot bitcoin ETFs in Canada and Europe as reason why the impact may be lower even in the U.S.

Can the Bulls Regroup and Kick Bitcoin Above the Overhead Resistance? If it does, some altcoins could join the rally. Let’s analyze the charts of the top 5 cryptocurrencies that are showing signs of rising.

Bitcoin Price Analysis

Bitcoin is still hovering between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This shows that bulls and bears are uncertain about the next move.

BTC/USDT daily chart. Source: TradingView

The BTC/USDT pair bounced off the 20-day EMA on July 7, suggesting that the bulls continue to defend this level aggressively. Buyers will make another attempt to overcome the $31,500 resistance. If successful, the pair could start the next phase of its uptrend. The duo could first rise to $32,400 before a sprint to $40,000.

The bears may have other plans. They will try to protect the overhead resistance and pull the price below the $29,500 support. If this level breaks down, multiple short-term bull stops could be hit. This could take the pair down 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 speaking, narrow trading is followed by range expansion, but it is difficult to accurately predict the direction of the breakout. Therefore, it is better to wait for the price to break out of this range before making a large bet.

If the price breaks above the 50 SMA, the bulls will attempt to push the pair above $31,500. If they succeed in doing so, the pair could start a new uptrend. Conversely, a break below $29,500 could start a correction towards $27,500.

Solana Price Analysis

Solana (SOL) has been trading between $15.28 and $27.12 for the past few months. Failure to sustain the price below the support of the range started an uptrend that has risen above the downtrend line. This shows 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 approaching overbought territory, suggesting the path of least resistance is to the upside. There is a minor resistance at $22, but if this level is breached, the SOL/USDT pair could rally to $24 and eventually to the overhead resistance at $27.12.

On the downside, $18.70 is an important support level to watch. A break and close below this level could open the door for a drop to the strong support area between $16.18 and $15.28.

SOL/USDT 4-hour chart. Source: TradingView

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

If the price rebounds strongly off the 20 SMA, the bulls will make another attempt to overcome the $22 hurdle. If they are successful, the pair could jump to $24.

The first sign of weakness will be a break below the 20-day moving average. This would indicate short-term bull profit-taking. The pair may then slide towards the 50 moving average.

Avalanche Price Analysis

After struggling for several days around the 50-day moving average ($12.99), Avalanche (AVAX) managed to break above that 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 positive territory. This shows that the bulls have the upper hand. The AVAX/USDT pair may rise to $16, where the bears may mount a strong defense again.

If the subsequent correction finds support at the 20-day EMA ($13), it would point to the start of a move up to $18. An important support level to watch on the downside is $12. A break below this level could drag the price to the important support at $10.52.

AVAX/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the price has risen above the symmetrical triangle, indicating that the bulls are trying to take control. Upside could face selling near resistance above $15, but bulls are expected to buy dips at the 20-day moving average. If this support holds, the chances of a rally above $15 increase.

If the bears want to stop the rise, they will have to quickly pull the price below the moving averages. This could trap aggressive bulls, causing them to liquidate. The pair may then slide towards the support line of the triangle.

related: BlackRock ETF Stimulates U.S. Bitcoin Buying, Study Says ‘Out of Zero’

Filecoin price analysis

Filecoin (FIL) is attempting to form an inverse head and shoulders pattern, which will complete on a breakout and close above the neckline around $5.

FIL/USDT daily chart. Source: TradingView

The moving averages are about to complete a bullish crossover and the RSI is in positive territory. This shows that the bulls have a slight advantage. The bulls will attempt to push the price to the neckline of the reversal pattern. If the bulls overcome this hurdle, the FIL/USDT pair could start a fresh increase. The target of this bullish setup is $7.30.

This positive view could be invalidated in the short-term if the price breaks and sustains below the moving averages. This could take the pair down to $3.5 and then to $3.

FIL/USDT 4-hour chart. Source: TradingView

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

Conversely, if the price turns down from the moving averages and breaks below $4.20, it will indicate that short-term sentiment remains negative and traders are selling into rallies. This could pull the price to $4 and then to $3.60.

EOS price analysis

EOS (EOS) has been forming a higher highs and higher lows pattern, suggesting a possible change in the near-term trend.

EOS/USDT daily chart. Source: TradingView

The 20-day EMA ($0.73) has flattened out and the RSI is nearing the midpoint, suggesting that selling pressure is easing. Buyers must push the price above the overhead resistance at $0.79 to signal that the downtrend may be coming to an end. Subsequently, the EOS/USDT pair could surge to $0.93.

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

EOS/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been gradually rising. If the buyers push the price above the 50 SMA, the pair could retest the overhead resistance at $0.79. If the bulls overcome this hurdle, the pair could surge to $0.83 and eventually $0.90.

Contrary to this assumption, if the price turns down and breaks below the uptrend line, it will indicate that the bears are back in charge. The pair could then drop to $0.67 and then to $0.64.