As Bitcoin corrected on July 9, altcoin prices dropped but many are holding above their support levels, suggesting the uptrend will resume
Veteran trader Peter Brandt believes that a new altcoin season is likely to start in the near future and he predicted that altcoins are likely to outperform Bitcoin (BTC) during this next run. In the short-term, altcoins could embark on a rally without the support of Bitcoin but in the long-term it is unlikely that altcoins will rally if Bitcoin struggles to move up.
On July 9, the S&P 500 corrected and that resulted in a drop in Bitcoin, which shows that the correlation between the two remains intact. As Bitcoin broke below $9,200 level, it attracted profit booking from altcoins and pulled their prices lower.
Daily cryptocurrency market performance. Source: Coin360
In other news, Coinbase is reported to be preparing to list on a U.S. stock exchange at some point this year according to Reuters sources. If that happens, it could be a huge boost for the crypto sector as the listing is likely to attract the attention of several traditional investors.
The top-ranked asset on CoinMarketCap had closed (UTC time) above the 50-day simple moving average ($9,373) on July 8, which was a positive sign but the bulls could not build upon this breakout and the price dipped back below the moving averages on July 9.
BTC/USD daily chart. Source: TradingView
Both moving averages remain flat and the relative strength index is just below the midpoint, which suggests a balance between supply and demand.
If the bears sink the price below the trendline of the ascending triangle, the advantage will shift in favor of the bears and a drop to $8,638.79 is possible.
Conversely, if the BTC/USD pair rises from the current levels or the trendline, the bulls will again try to resume the up move. If the price sustains above $9,500, a rally to $10,000 will be on the cards.
Ether (ETH) turned down from the minor resistance at $249.195 on July 9, which suggests that the bears are aggressively defending the $249.195–$253.556 resistance zone.
ETH/USD daily chart. Source: TradingView
The bulls are currently attempting to defend the 20-day EMA ($234). If the second-ranked cryptocurrency on CoinMarketCap rebounds off this support, the bulls will once again attempt to scale the price above the overhead resistance zone.
A close (UTC time) above $253.556 will increase the possibility of a rally to the next target at $288.599.
Conversely, if the bears sink the price below the moving averages, it could keep the ETH/USD pair range-bound for a few more days.
XRP turned down from the first resistance of $0.214616 on July 7, which shows that the aggressive bulls booked profits at this level. Currently, the bulls are attempting to keep the altcoin above the 50-day SMA ($0.198).
XRP/USD daily chart. Source: TradingView
If the fourth-ranked cryptocurrency on CoinMarketCap bounces off the current levels, the bulls will once again try to propel the price above $0.214616. If they succeed, it could pave the way for a rally to $0.235688.
Instead, if the bears sink the XRP/USD pair below the moving averages, it could signal shorting at higher levels. Such a move could drag the price to the $0.17 levels once again.
The bulls have not been able to propel Bitcoin Cash (BCH) above the immediate resistance of $245.49 for the past four days. This suggests that the bears are aggressively defending this level.
BCH/USD daily chart. Source: TradingView
If the bears can keep up the selling pressure and sink the fifth-ranked cryptocurrency on CoinMarketCap below the 20-day EMA ($233), a drop to $217.55 is possible. A break below this support can drag the price to $200.
Contrary to this assumption, if the BCH/USD pair rebounds off the current levels, the bulls will make another attempt to scale the price above $245.49. If they succeed, a rally to $260 and then to $280.47 is possible.
The July 6 rally in Bitcoin SV (BSV) has not seen follow up buying that has resulted in profit booking by the short-term bulls.
Usually, in a strong up move, the corrections last anywhere between one to three days. In this case, the pullback has entered the fourth day, suggesting weakening momentum.
BSV/USD daily chart. Source: TradingView
If the bears sink the sixth-ranked cryptocurrency on CoinMarketCap below $170, it would be a huge negative that can drag the price to $146.2 once again.
The 20-day EMA ($174) is gradually sloping up and the RSI is in the positive territory, which suggests that bulls have a slight advantage.
If the BSV/USD pair rebounds off the 20-day EMA and rises above $200, a rally to $227 is possible. The next trending move is likely to start above $227 or on a break below $146.20.
As suggested in the previous analysis, Cardano (ADA) has corrected to the breakout level of $0.11. If the altcoin rebounds off the $0.10–$0.11 zone, it will indicate that the bulls are keen to defend this zone and it will act as a new floor for the price.
ADA/USD daily chart. Source: TradingView
A strong bounce off the support zone could offer a buying opportunity to traders with a close stop-loss. The uptrend is likely to resume after the buyers propel the seventh-ranked cryptocurrency on CoinMarketCap above the intraday high of $0.1380977 made on July 8. Above this level, the next target is $0.173 and then $0.20.
Both moving averages are sloping up and the RSI is in the positive zone, suggesting advantage to the bulls. This positive view will be negated if the ADA/USD pair breaks below $0.10.
The bulls could not sustain Litecoin (LTC) above the immediate resistance of $45.3501 on July 9, which resulted in profit booking by the aggressive bulls. This has dragged the price down to the 20-day EMA ($43).
LTC/USD daily chart. Source: TradingView
If the eighth-ranked cryptocurrency on CoinMarketCap rebounds off the current levels, the bulls will again try to push the price above $45.3501. If they succeed, a rally to $51 is possible.
On the other hand, if the LTC/USD pair breaks below the 20-day EMA, the bears will try to sink the price to the support of the range. The flat moving averages and the RSI just above the 50 level suggests a balance between supply and demand.
Binance Coin (BNB) witnessed profit booking at $17.50 on July 9 that dragged the price lower, however, the positive thing is that the bulls have not allowed the altcoin to dip below the first support at the 50-day SMA ($16.51).
BNB/USD daily chart. Source: TradingView
If the ninth-ranked crypto-asset on CoinMarketCap rebounds off the moving averages, it will increase the possibility of a rally to $18.1377. A breakout of this level will be a positive sign as it will open the doors for a move to $21.50.
The 20-day EMA ($16.24) is gradually sloping up and the RSI is in the positive territory, which suggests a minor advantage to the bulls.
This view will be invalidated if the BNB/USD pair turns around and breaks below the moving averages because such a move will indicate profit booking at higher levels.
Crypto.com Coin (CRO) remains in a strong uptrend as both moving averages are sloping up and the RSI is in the overbought zone, which suggests that bulls have the upper hand.
CRO/USD daily chart. Source: TradingView
The next target on the upside is $0.15306 and if the bulls can propel the 10th-ranked cryptocurrency on CoinMarketCap above this level, the uptrend can extend to $0.20.
The only warning sign is that the RSI has risen to about the same levels from where the CRO/USD pair had started a minor correction on June 23.
If the price dips and sustains below $0.138916, it could result in a drop to the 20-day EMA ($0.128).
Although EOS closed (UTC time) above the minor resistance at $2.6209 on July 8, the bulls could not carry the price to the next level at $2.8319, which is a negative sign because it indicates that demand dried up at higher levels.
EOS/USD daily chart. Source: TradingView
Author: Rakesh Upadhyay
The 11th-ranked cryptocurrency on CoinMarketCap turned down from $2.7296 on July 9 and is currently finding support at the moving averages. If the altcoin bounces off the current levels, the bulls will make another attempt to carry the price to $2.8319. A break above $2.8319 can result in a rally to $3.1104.
Conversely, if the bears sink the EOS/USD pair below the moving averages, then a drop to the support of the range is possible. The next trending move will start after the price breaks out of the $3.1104–$2.3314 range.