Current market trends are seen to be moving weakly, flanked by inflationary factors even though the reading of the United States (US) NFP employment data last Friday strengthened.
In addition, the probability of the Federal Reserve (Fed) implementing an interest rate hike of 75 basis points in September increased to 68% according to data from the CME Group.
However, analysts from Fundstrat Global Advisors think the S&P 500 index has a history of rallying after rate hikes and they put the rally forecast at 4,800 in the 2nd half of the year.
If the correlation between equity and digital currency is true as previously discussed, then the crypto market has a chance to recover if Bitcoin (BTC) crosses the $25,000 level.
Examine the details of crypto assets that have bright potential in the near term.
Bitcoin (BTC)
BTC is currently hovering in the area of the 20 exponential moving average (EMA) at $22,000, indicating a lack of demand for a bounce higher.
With the horizontal moving average and the relative strength index (RSI) at the midpoint, investors may benefit if the price declines and stays above the $24,000 level.
And if the price manages to reach that level, then BTC has a good chance of rallying to the $28,000 level and then to the $32,000 resistance level.
On the other hand, if the price falls from the 20-day EMA, BTC will move to the 50-day simple moving average at $21,000.
Flow (FLOW)
FLOW is seen to be in a tight trading range with an upward trend, indicating that investors are in no rush to book profits.
The 20-day EMA at $2.07 has started to rise and the RSI is now in the overbought zone indicating an uptrend is underway.
If FLOW is pushed past the resistance zone of $3 to $3.30 then the price can rally with momentum to reach towards $4.60.
However if FLOW breaks below the 20 EMA, the price will drop to the 50% Fibonacci retracement level at $2.41 and move to the 61.8% retracement level at $2.27.
Theta Network (THETA)
THETA is seen to remain above the overhead resistance at $1.55 which is in favor of the upside.
The 20-day EMA at $1.39 has emerged and the RSI is in positive territory, signaling upside for investors.
If the price rises above the $1.65 level, then THETA can enter a new rally towards the $2.10 pattern target and if it overcomes the overhead barrier, the price will reach the $2.60 rally
On the opposite side, if THETA falls below the EMA 20 the price will then drop to the SMA 50 which signals that the uptrend may end in the near term.
