Zcash jumps after US-Iran deal hopes improve crypto market sentiment. What to watch next?

As most other cryptocurrencies, Zcash rallied yesterday after Al-Arabiya reported that Qatar and Pakistan presented a compromise proposal that could pave the way for a US-Iran agreement, but the momentum faded somewhat after a diplomat involved in the talks pushed back against reports that a deal was close.Markets seem to retain some hope of a breakthrough given the recent increase in positive headlines and the proximity to the US midterm elections. Trump might make more concessions to secure at least a short-term deal to bring oil prices and Treasury yields lower, while boosting the stock market. It goes without saying that a breakthrough would push Zcash to new highs as inflation and rate hike concerns would ease, and the risk sentiment would turn strongly positive. The positive crypto market reaction to yesterday’s headlines supports this view. A prolonged stalemate or a re-escalation, on the other hand, will likely continue to limit the upside. Traders should also keep an eye on the US Flash PMIs due on Friday given the recent growth concerns. A stronger than expected report could trigger a short-term relief rally for Zcash on improved risk sentiment, but it wouldn't change the bigger picture, as stronger economic data and persistent inflationary pressures would reinforce the need for further Fed rate hikes. A weak report, on the other hand, could intensify growth concerns and lead to widespread risk aversion, putting further pressure on the cryptocurrency. ZCASH TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that Zcashextended the gains yesterday after the positive US-Iran headlines. If we do get another pullback into the 1,031 level, we can expect the buyers to step in, with a defined risk below the level, to position for a rally into the 2,000 level. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 800.00 level next.ZCASH TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see the price broke above the downward trendline that was defining the bearish structure. The buyers piled in on the break to target a rally into the 1,350 level. If the price gets there, we can expect the sellers to step in, with a defined risk above the level, to position for a drop into the 1,031 level. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 2,000 level next, with the 1,692 high as the first target.  ZCASH TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have now a minor upward trendline defining the bullish momentum. If we get a pullback, we can expect the buyers to lean on the trendline, with a defined risk below it, to keep pushing into new highs. Thes sellers, on the other hand, will look for a break to pile in for a drop into the 1,031 level next. The red lines define the average daily range for today.UPCOMING CATALYSTSTomorrow we get the latest US Jobless Claims figures, while on Friday we conclude the week with the Flash US PMIs.  This article was written by Giuseppe Dellamotta at investinglive.com.