Ethereum price looks to make a new 2020 high as Bitcoin bulls fight to hold BTC price above $9,600.
Bitcoin (BTC) has covered a considerable amount of ground over the past few years. Initially considered as an asset mostly used for unlawful activities, it has finally received the approval of the Office of the Comptroller of the Currency. This means banks in the U.S. will now be able to provide crypto custody services to their clients.
This move could further encourage institutional investors to enter the crypto space because they are likely to trust their banks more than the other custody services on offer. However, funds are unlikely to start flowing immediately as institutions are known to tread cautiously.
Daily cryptocurrency market performance. Source: Coin360
In the short-term, investor sentiment is likely to be swayed by the performance of gold and the U.S. equity markets. As gold is backed by momentum, the institutional investors are likely to remain invested in it.
At the same time, if the U.S. equity markets enter a correction as anticipated by a few stock market veterans, then the top-ranked asset on CoinMarketCap might show weakness due to its strong correlation with the S&P 500.
Bitcoin (BTC) broke above the $9,500 level on July 22 and followed it up with another positive close on July 23. However, the lack of momentum following the breakout of $9,500 is a mild negative as it suggests that the bulls are in no urgency to buy at these levels because they are not confident that the rally will pick up steam.
BTC/USD daily chart. Source: TradingView
Still, if the bulls can keep the BTC/USD pair above $9,500, a rally to $10,000 is possible. A break above $10,000 will be a huge sentiment booster and could attract further buying. If the buyers can drive the price above $10,500, the subsequent pace of the rally is likely to be sharp.
Currently, the advantage is with the bulls but if they do not make use of this opportunity, then it might not take long for the bears to make a comeback.
A break below $9,500 will be a huge negative as it will indicate a lack of buyers at higher levels. This could attract profit booking by short-term traders, increasing the possibility of a break below the trendline of the ascending triangle.
Ether (ETH) soared above the overhead resistance of $253.556 on July 22, which ended its consolidation and resumed the uptrend. The follow up buying seen since then adds to the positive sentiment suggesting that traders who were waiting on the sidelines have started to jump in.
ETH/USD daily chart. Source: TradingView
The bears might attempt to stall the up move at $288.599, which might result in a minor correction or consolidation at that level but the possibility of a break above this level is high.
On a close (UTC time) above $288.599, the second-ranked cryptocurrency on CoinMarketCap could rally to $320 and then to $366.
This bullish view will be invalidated if the ETH/USD pair turns down from the current levels or $288.599 and plummets below $253.556.
XRP broke above the downtrend line and quickly rallied to the neckline of the inverse head and shoulders pattern. However, the bulls could not push the price above this level, which suggests that the bears are aggressively defending this resistance.
XRP/USD daily chart. Source: TradingView
If the fourth-ranked cryptocurrency on CoinMarketCap does not give up much ground, the bulls will again attempt to propel the price above the neckline. The rising 20-day exponential moving average ($0.197) and the relative strength index in the positive territory suggest that the path of least resistance is to the upside.
A breakout and close (UTC time) above the neckline will complete the bullish setup that has a target objective of $0.25. There is a minor resistance at $0.235688 but it is likely to be crossed. This bullish view will be negated if the bears sink the XRP/USD pair below $0.188499.
Bitcoin Cash (BCH) turned down from just below the $246 resistance on July 23 and has again dipped to the moving averages. If the bears sink the price below the moving averages, a drop to $217.55 is possible.
BCH/USD daily chart. Source: TradingView
If the fifth-ranked cryptocurrency on CoinMarketCap rebounds off the moving averages, the bulls will make another attempt to drive the price above the overhead resistance of $246.
If they succeed, a rally to $260 and then to $280.47 is possible. However, the flattish moving averages and the RSI close to the midpoint suggests that the range-bound action is likely to extend for a few more days.
The bulls propelled Bitcoin SV (BSV) above the downtrend line on July 21 but they could not carry the altcoin to the first target of $200, which suggests a lack of demand at higher levels. The price has again dipped to the moving averages.
BSV/USD daily chart. Source: TradingView
If the bears can sink the sixth-ranked cryptocurrency on CoinMarketCap below the moving averages, a drop to $170 is likely. A break below this support could result in a decline to the critical support of $146.20.
However, if the BSV/USD pair rebounds off the moving averages, the bulls will again attempt to push the price to $200. If they succeed, the pair could rise to $227.
The rebound of the 20-day EMA ($0.118) has not picked up momentum, which suggests that buying has dried up at higher levels. This could keep Cardano (ADA) inside the pennant formation for a few more days.
ADA/USD daily chart. Source: TradingView
As the price is trading above the upsloping moving averages and the RSI is in the positive territory, the advantage remains with the bulls.
The seventh-ranked cryptocurrency on CoinMarketCap is likely to resume the uptrend if the bulls can propel the price above the pennant and the $0.1380977 resistance.
On the other hand, if the bears sink the ADA/USD pair below the pennant, a deeper correction is possible. A break below the $0.11–$0.10 support will signal that the uptrend has possibly ended.
Litecoin (LTC) turned down from the overhead resistance of $46 on July 23, which suggests that the bears are aggressively defending this level. However, the bears have not been able to sink the price below the moving averages, indicating buying on dips buy the bulls.
LTC/USD daily chart. Source: TradingView
The moving averages are not providing any insight about the next directional move because both of them are flat but if the RSI breaks above the 60 level, it could signal a pick up in momentum to the upside.
If the bulls can propel the eighth-ranked cryptocurrency on CoinMarketCap above $46, a rally to $51 is likely. The bulls are likely to defend this resistance aggressively but if crossed, it could lead to a new uptrend.
Contrary to the assumption, if the bears sink the price below the moving averages, the LTC/USD pair could drop to $39.
The bulls pushed Binance Coin (BNB) above the overhead resistance of $18.20 on July 23 and followed it up with another up move that cleared the $19 resistance today.
BNB/USD daily chart. Source: TradingView
This is a huge positive as a close (UTC time) above $19 will complete the bullish ascending triangle pattern that has a target objective of $22.93 and then $24. The gradually upsloping 20-day EMA ($17.5) and the RSI above 60 level suggests that bulls have the advantage.
This bullish view will be invalidated if the ninth-ranked crypto-asset on CoinMarketCap turns down from the current levels and plummets below $18.20 and the 20-day EMA. Such a move could intensify selling and drag the price to the trendline of the triangle.
Crypto.com Coin (CRO) has been hovering close to the $0.1462 level for the past two days, which suggests that the bulls are not booking profits yet as they expect the uptrend to resume.
CRO/USD daily chart. Source: TradingView
Above $0.1462, the tenth-ranked cryptocurrency on CoinMarketCap can rally to the $0.15306–$0.15416 resistance zone. If the momentum can push the price above this zone, the next target to watch out for is $0.174114.
The RSI is forming a bearish divergence, which is the only negative development on the chart. During bull trends, such divergences tend to fail but traders should still exercise caution because sometimes they signal a reversal.
A break below the 20-day EMA ($0.14) will be the first sign of weakness and a deeper correction is possible when the CRO/USD pair dips below $0.13824.
Chainlink (LINK) broke above the downtrend line on July 23, which was a positive sign but the bulls could not keep up the momentum and the altcoin turned down from $8.099. This suggests that the bears are selling on every rally.
LINK/USD daily chart. Source: TradingView
If the bears can sink the 11th-ranked cryptocurrency on CoinMarketCap below the 20-day EMA ($7), it will be a huge negative.
There is a minor support at the 50% Fibonacci retracement level of $6.8224 but if this level gives way, a decline to the 50-day simple moving average is possible.
Conversely, if the LINK/USD pair again rebounds off the 20-day EMA, the bulls will try to push the price above $8.1388. If they succeed, a retest of $8.9080 will be on the cards. Above this level, the next target to watch out for is $11.095.
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.