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
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.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.