The latest report on nonfarm payrolls revealed that job additions in June were below economists’ expectations. With an increase of 209,000 jobs, the figures indicate a cooling labor market. However, market observers remained concerned about the average hourly earnings growth, which held steady at 0.4% from May and 4.4% from a year ago. Despite these numbers, expectations of a 25 basis point rate hike by the United States Federal Reserve in the next meeting remained unchanged. The lackluster job growth and steady earnings growth put pressure on the U.S. equities markets, resulting in all three major indices experiencing a decline for the week. The S&P 500 was down 1.16%, while the Nasdaq fell by 0.92%.

Spot Bitcoin ETFs May Not Drive Crypto Space Growth

A report by JPMorgan managing director Nikolaos Panigirtzoglou raised concerns about the potential impact of a spot Bitcoin exchange-traded fund (ETF) on the crypto market. According to Panigirtzoglou, the lack of interest in spot Bitcoin ETFs in Canada and Europe suggests that a similar product in the United States may not be a game changer. This news had a minor negative effect on the crypto markets.

Could Bulls Rally and Boost Bitcoin Above Resistance?

Despite the setbacks in the labor market and the concern surrounding spot Bitcoin ETFs, there is still potential for a rally in the crypto market. Bitcoin, the leading cryptocurrency, has been trading between the 20-day exponential moving average ($29,854) and the overhead resistance at $31,000. This indicates uncertainty among both the bulls and the bears about the next directional move.

On July 7, the BTC/USDT pair bounced off the 20-day EMA, showing that the bulls are aggressively defending this level. Buyers will attempt to overcome the resistance at $31,500, which could lead to the start of the next uptrend. If successful, the pair may advance to $32,400 and potentially reach $40,000. However, the bears will try to protect the overhead resistance and push the price below the $29,500 support. If this level is breached, it could trigger a sell-off, potentially causing the pair to drop to the 50-day simple moving average ($28,101).

The 4-hour chart indicates that the pair is trading within a range of $29,500 to $31,500. Typically, a tight range trading period is followed by a range expansion, but the direction of the breakout is difficult to predict. Therefore, it is advisable to wait for the price to escape the range before making significant bets. If the price breaks above the 50-SMA, the bulls will attempt to push the pair above $31,500, potentially starting a new upward movement. Conversely, a drop below $29,500 could lead to a correction towards $27,500.

Solana Attempts a Comeback

Solana (SOL), another top cryptocurrency, has been trading within a large range between $15.28 and $27.12 for several months. However, the recent failure to sustain the price below the range support has sparked an upward movement. The moving averages have completed a bullish crossover, and the RSI is approaching the overbought territory, indicating that the path of least resistance is to the upside. If the price crosses the minor resistance at $22, the SOL/USDT pair may rally to $24 and ultimately face the stiff overhead resistance at $27.12. On the downside, it is crucial to monitor the $18.70 support level, as a break below it could lead to a drop towards the strong support zone between $16.18 and $15.28.

The 4-hour chart shows that both moving averages are sloping upwards, while the RSI is in positive territory. These indicators suggest that the bulls are currently in control. However, the bears are still present and have pulled the price to the 20-EMA. If the price bounces off the 20-EMA strongly, the bulls will make another attempt to overcome the obstacle at $22, potentially driving the pair higher. The first sign of weakness would be a drop below the 20-EMA, indicating profit-taking by short-term bulls. In this case, the pair may slide towards the 50-SMA.

Avalanche Successfully Breaks Resistance

After struggling near the 50-day SMA for several days, Avalanche (AVAX) managed to break through the level on July 8. The moving averages are close to completing a bullish crossover, and the RSI has entered positive territory, indicating an advantage for the bulls. The AVAX/USDT pair could rise to $16, where the bears may mount a strong defense. If subsequent corrections find support at the 20-day EMA, it could signal the start of an upward movement towards $18. On the downside, $12 is an important support level to watch. A break below this level may lead to a drop to the vital support at $10.52.

The 4-hour chart shows that the price has risen above a symmetrical triangle pattern, suggesting that bulls are attempting to take charge. While there may be resistance near the stiff overhead level of $15, bulls are expected to buy the dips to the 20-EMA. If this support holds, the likelihood of a rally above $15 increases. On the other hand, if the price turns down from the moving averages and falls below $4.20, it suggests that the short-term sentiment remains negative, resulting in selling on rallies. This could push the price towards $4 and subsequently to $3.60.

Analysis

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