Top 5 Crypto Pairs to Watch This Week: BTC, ETC, OP, UNI, and YFI

Key Insights:

• Bitcoin (BTC) rose for the fourth week in six, supported by a shift in sentiment towards Fed monetary policy.
• Ethereum Classic (ETC) continued the bullish upward trend, supported by investor sentiment towards the Ethereum (ETH) Merge.
• The shift in sentiment was evident in the technical indicators. The EMAs for BTC, ETC, OP, UNI, and YFI delivered bullish signals.

In the week ending July 31, the total crypto market cap was on target for a fourth consecutive weekly rise. Significantly, the crypto market was also on target to end a three-month losing streak.

Bearish sentiment early the week saw the market cap fall to a low of $924 billion. Market apprehension ahead of the Wednesday Fed policy decision weighed on riskier assets.

However, a dovish 75-basis point Fed rate hike and US economic indications on Thursday supported a breakout week.

Hopes of a softer pace of interest rate hikes, supported by a US economic contraction in Q2 led to the markets pricing out a 75 basis point hike in September.

US corporate earnings also delivered support, with Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL) providing positive forward outlooks to support riskier assets.

Walmart (WMT) had spooked the markets with a gloomy outlook before the trio delivered the market boost.

Supported by a bullish final week, the NASDAQ 100 ended July up 12.35%, the best monthly showing since 2020.

The correlation between the NASDAQ 100 and the crypto market remained firmly in place.

Ethereum (ETH) Merge updates remained the key driver for Ethereum Classic (ETC), with Optimism (OP) also making a move on network news. Improved market conditions delivered much-needed support to yearn.finance (YFI) and Uniswap (UNI).

Over the weekend, it was a mixed session, with a Saturday breakout fizzling out before crypto support kicked on Sunday.

This week, the US economic calendar will influence. ISM survey-based PMI numbers are due out on Monday and Wednesday. On Thursday, jobless claims will also provide direction ahead of the nonfarm payroll numbers on Friday.

Expect the ISM Non-Manufacturing and nonfarm payroll figures to have a material impact on the NASDAQ 100 and the crypto market.

Investors will also need to monitor FOMC member chatter and corporate earnings.

Bitcoin (BTC)

This week, Monday through Sunday morning, bitcoin (BTC) was up 5.32% to $23,786.

A bearish start to the week saw BTC fall to a Tuesday low of $20,733 before striking a Saturday and a new July high of $24,619.

However, a choppy weekend saw BTC give up the $24,000 handle going into Sunday.

BTC movements in the week reflected the market reaction to the Fed policy decision, US economic indicators, and corporate earnings.

Last week, the Bitcoin Fear & Greed Index hit its highest level since April 6, rising to 42/100 before easing back. The Index fell just short of the neutral zone that begins at 46/100.

At the time of writing, BTC was up 0.59% to $23,786.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, bitcoin sat above the 50-day EMA, currently at $22,978.

The 50-day pulled away from the 200-day EMA. Following the Saturday bullish cross, the 100-day EMA broke clear from the 200-day EMA, delivering bullish BTC signals.

A widening of the 50-day from the 100-day EMA would support a break out from the week high of $24,619. A return to $25,000 give BTC a look at $30,000.

However, BTC would need to hold above the 50-day EMA to avoid the 100-day EMA, currently at $22,442, and a return to sub-$20,000.

Ethereum Classic (ETC)

This week, Monday through Sunday morning, Ethereum Classic (ETC) was up 58.63% to $40.53.

Tracking the broader market, ETC fell to a Tuesday low of $22.89 before surging to a Friday high of $45.27. While finding support from the broader market, progress towards the Ethereum Merge continued to drive ETC demand.

At the time of writing, ETC was up 2.74% to $40.53.

Looking at the trends, a move through the July high of $45.27 would support a run at the April high of $48.63 and $50. Avoiding a fallback to sub-$30 would be the key for ETC to maintain the near-term bullish trend.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, ETC sat above the 50-day EMA, currently at $32.88.

The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA breaking out from the 200-day EMA, both bullish ETC signals.

A further widening of the 50-day EMA from the 100-day EMA would support a bullish week ahead. However, ETC will need to hold above the 50-day EMA to avoid a return to sub-$30 and the 100-day EMA, currently at $28.00.

Optimism (OP)

This week, Monday through Sunday morning, Optimism (OP) was up 85.70% to $1.7070.

A bearish start to the week saw OP fall to a Tuesday low of $0.7458 before surging to a Friday high of $1.9620.

While OP found support from the broader crypto market, news updates from the network also delivered a boost.

News of Curve Finance submitting a governance proposal on Optimism for 100 million OP tokens for distribution on the Curve Pool delivered early support.

The platform also released Drippie, a new transaction system, which added further support.

At the time of writing, OP was down 5.64% to $1.7070.

Looking at the trends, a breakout from the week high of $1.880 would support a run at $2.00. However, market sentiment across the broader crypto market will need to improve for a breakout from $1.90. (There is no EMA technical analysis due to the data points).

Uniswap (UNI)

This week, Uniswap (UNI) is up 24.41% to $9.02.

In line with the broader market trend, UNI fell to a Tuesday low of $6.22 before rallying to a Thursday and a new July high of $9.82.

However, bearish going into the weekend, UNI fell back to sub-$9.00.

While finding support from the broader market, news of a move towards ‘Fee Switch’ delivered a boost.

At the time of writing, UNI was up 2.73% to $9.02.

Looking at the trends, a breakout from the July high of $9.82 would bring the April high of $12.30 into view. However, UNI would need to break down resistance at $10.00 to continue the upward trend.

A fall through the last week’s low of $6.22 would bring sub-$5.00 and the current year’s low of $3.33 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal. This morning, UNI sat above the 50-day EMA currently at $8.01.

The 50-day pulled away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA, both bullish UNI signals.

A widening of the 50-day EMA from the 100-day EMA would support a run at $10.00 to target the April high. However, UNI would need to hold above the 50-day EMA to avoid the 100-day EMA, currently at $7.45, and the last week low of $6.22.

Yearn.finance (YFI)

This week, yearn.finance (YFI) is up 68.31% to $11,745.

Tracking the broader market, YFI fell to a Tuesday low of $6,250 before rallying to a Saturday and a July high of $14,239. A late Saturday pullback led YFI back to sub-$12,000 to limit the upside for the week.

While finding support from the broader crypto market, market sentiment toward the anticipated August launch of veYFI delivered the breakout week.

At the time of writing, YFI was down 0.14% to $11,745

Looking at the trends, a breakout from the Saturday high of $14,239 would give YFI a free run at the May high of $18,565. YFI would then need to return to $20,000 to maintain the upward trend. However, a pullback to sub-$7,500 would see YFI face intense selling pressure.

Looking at the 4-hourly chart and the EMAs, the signal was bullish. YFI continued to steer clear of the 50-day EMA, currently at $8,719.

The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA breaking clear of the 200-day EMA, both positive YFI indicators.

A further widening of the 50-day EMA from the 100-day EMA would support a breakout from the week high of $14,239 to target the May high of $18,565. However, a fall through the 50-day EMA would bring sub-$8,000 and the 100-day EMA, currently at $7,782, into view.