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Bitcoin, Ethereum, & Cardano Outlook: Neutral

• Bitcoin (BTC/USD) resilience has been holding above $23,000, and the price action remains range-bound.
• The NFP (non-farm payrolls) numbers smashed estimates, and US employment returned to pre-pandemic levels.
• Global regulators continue to monitor digital assets, with a variety of investigations underway.

US Employment Data Smashed Estimates, Easing Recession Fears - Bitcoin, Ethereum, & Cardano Edge Higher

Bitcoin (BTC), Ethereum (ETH-X), and Cardano (ADA-X) have remained steady while recent price action has attempted to reclaim key levels. With global central banks implementing quantitative tightening measures to tame elevated price pressures, a positive US NFP (non-farm payroll) report has exceeded expectations by a large margin (528,000 jobs vs. an estimated 250,000).

A tight labor market that has returned to pre-pandemic levels in an environment of decade-high inflation sets the stage for another 75-basis point rate hike to be announced at the September FOMC meeting.

As the US Federal Reserve (Fed) remains committed to achieving the objectives of their dual mandate (4% unemployment with an inflation target of 2%), a wide variety of factors have influenced the trajectory for cryptocurrency.

Bitcoin, Ethereum, and Cardano Vulnerable to Regulations

However, despite heightened recession fears, contractionary monetary policy, and an ongoing war, Bitcoin has temporarily secured a position above $23,000 in an attempt to reclaim the $24,000 psychological level, while Ethereum edges just above $1,700.

Although we've seen robust economic data and better-than-expected earnings, volatility remains low, limiting the upside move. Meanwhile, the collapse of several major market players within the crypto sphere (Terra, Celsius, and Three Arrows Capital) have once again caught the attention of the SEC (securities exchange commission) and other global regulators.

For the week ahead, major risk events that could provide an additional catalyst for the short-term move include US CPI, PPI, and Michigan Consumer sentiment as investors continue to monitor geopolitics.

DailyFX Economic Calendar

With that being said, a few technical levels that remain on the radar for Bitcoin on the upside include the $24,000 handle with a break above paving the way for the 100-day moving average, which currently provides additional resistance at $25,945.

Bitcoin Daily Chart

Source: TradingView, Chart by Tammy Da Costa

In contrast, a break of the range below $22,000 could bring $20,000 into play, with the next level of support holding at $18,000.

Ethereum (ETH/USD) Daily Chart

Source: TradingView, Chart by Tammy Da Costa

For Ethereum, support and resistance continue to hold at the 50- and 100-day moving average (MA) at $1,336 and $1668, with the potential of driving prices in either direction.

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