Is the worst behind us? When will Bitcoin return to around 28k USD?

Bitcoin

According to the latest Bureau of Labor Statistics report, the US non-farm sector added as many as 528,000 new jobs in July. This is an outright sensational reading, given that the market consensus was for a result of only 250,000.

The positive tone of this publication was also supported by a positive revision of June’s reading from 372,000 to 398,000, as well as data on the unemployment rate. Indeed, despite the expected maintenance at 3.6%, this one finally settled at 3.5%, which is the best result since the beginning of the pandemic, that is, since March 2020.

Such perfect data from the US economy indicates that the labour market remains very strong, which naturally increases the chances of a larger interest rate hike by the Federal Reserve at its September meeting.

The argument for a third consecutive 75-basis-point hike in the federal funds rate at the FOMC’s September meeting could also be made on the back of solid wage growth, a strongly pro-inflationary factor.

Although this information should, in theory, weigh on the cryptocurrency market, the quotations of most of the coins clearly gained during Friday’s trading. So it seems that investors are looking a bit further ahead and not paying as much attention to the September FOMC meeting and the next interest rate hike hoping for an imminent normalization of Fed policy.

This has also led to Bitcoin being back above $24,000 on Monday. If the trend continues, the BTC price could in the near future return even to the vicinity of $25,000, where the upper limit of the parallel upward channel currently runs, or further even to the region of $28,500.

Ethereum

Looking at Ethereum quotes, we will note that the price of this cryptocurrency bounced last Friday from technical support at $1600, and we are currently observing an attempt to break out above resistance in the area of $1725. If this attempt is successful, then the ETH exchange rate could head further north towards $2350.

The upside potential is therefore quite high, although it will be worth watching for possible market reactions in the area of $2,000. After all, this is quite an interesting zone, in the vicinity of which some perturbations could occur.

Solana

The upside potential can also be seen on Solana quotes. The price of this cryptocurrency has been moving since mid-June inside a parallel upward channel. However, due to the recent declines, the SOL price has settled in the region of the upward trend line, which is the lower limit of this formation, where a demand reaction already appeared in the second half of last week.

If only the increases that have been going on for several days continue, Solana quotations could return to the area of $52, where the upper limit of the aforementioned upward channel currently runs.

Avalanche (AVAX)

Looking at the quotations of Avalanche, one can see that the price of this cryptocurrency has risen by more than 31% over the past few days, thus extending the range of the ongoing appreciation since mid-June this year to more than 111%. Such a significant increase caused the AVAX exchange rate to break out of the parallel growth channel with the top. In addition, we are currently seeing an attempt to break out above horizontal resistance at $28.

If this attempt is successful, the price of this cryptocurrency could head further north towards $37 or even further towards $54 in the near future. After all, this is where the two closest resistance levels are located, which will be worth keeping an eye on.

XRP

Looking at the quotations of XRP, we will note that the price of this cryptocurrency has been holding since mid-June this year inside a parallel upward channel. However, the declines observed over the past few days proved too weak for the cryptocurrency’s price to return to the upward trend line marking the lower limit of this formation, that is, in the region of $0.33.

Indeed, with the start of the new week, we again see apparent increases here, and if only this trend continues, we could expect to test the upper limit of the channel again in the near future. In turn, a sustained top breakout from this pattern could open the door to much larger increases in the future.

Nem (XEM)

The current situation on Nem quotations is also fascinating. After all, the price of XEM has been holding for some time inside the formation of a right-angled upward triangle, the upper limit of which is marked by resistance at $0.054.

A sustained overcoming of this barrier and an upward breakout from the triangle could thus open the door to further increases in the region of $0.067 or even $0.087. After all, this is where the next two resistance levels are located, which will be worth keeping an eye on during a possible upward rally.

Cardano (ADA)

Looking at Cardano quotes, we will notice that the ADA exchange rate has already been moving in a horizontal trend (in consolidation) between support at $0.4150 and resistance in the area of $0.55 since mid-June this year.

As a result of the recent rally, the price of this cryptocurrency has returned to the vicinity of the upper limit of this system. If this resistance is overcome, the ADA exchange rate could continue its northward rally towards $0.65 in the near term, or even to $0.75.

Polakdot

We would also expect the continuation of increases on the quotes of Polkadot (DOT). Indeed, the price of this cryptocurrency recently rebounded from local support at $7.90, after which it broke above resistance in the area of $8.65.

Thus, if the trend continues, we could expect to see a retest of resistance at $10.50 in the near future, or a further rally to the $11.80 area.