Bitcoin and several altcoins are taking a breather after the sharp rally of the past two days, but the general trend remains bullish.
Ripple Labs’ victory in the case against the United States Securities and Exchange Commission gives a significant boost to the crypto industry. In addition to benefitting Ripple and XRP, analysts believe that the ruling will weaken the regulator’s case against Binance and Coinbase.
In another positive event for the crypto space, the U.S. Dollar Index (DXY) completed a bearish head-and-shoulders pattern on July 12 and followed that up with a drop below the psychological level of 100 on July 13. The DXY typically moves in inverse correlation with Bitcoin hence its weakness is a positive sign for the crypto bulls.
LookIntoBitcoin creator Philip Swift said that increased on-chain spending volume shows that Bitcoin is in the first stage of a bull market.
The sharp rally in XRP and several other altcoins following Ripple’s victory is a sign that the crypto bulls are making a comeback.
What are the important resistance levels that need to be crossed for Bitcoin and the altcoins to start the next leg of the up move? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin broke and closed above the $31,000 resistance on July 13, but the bulls are struggling to build upon this strength. This suggests that the bears have not yet given up and they continue to sell at higher levels.
BTC/USDT daily chart. Source: TradingView
Although the upsloping moving averages indicate an advantage to buyers, the relative strength index (RSI) is forming a bearish divergence, signaling that the bullish momentum may be weakening.
The bears will try to pull the price back below the breakout level of $31,000. If they do that, the BTC/USDT pair could drop to the 20-day exponential moving average (EMA) of $30,244. This remains the key level to keep an eye on. A bounce off it will suggest that the sentiment remains bullish and traders are buying on dips. A rally above $32,400 could clear the path for a potential rise to $40,000.
On the other hand, a break and close below the 20-day EMA could yank the price to $29,500. The bears will have to break this support to gain the upper hand in the near term.
Ether price analysis
The failure of the bears to sink Ether below the 50-day simple moving average (SMA) in the past few days may have attracted strong buying by the bulls. That pushed the price to the overhead resistance of $2,000 on July 13.
ETH/USDT daily chart. Source: TradingView
The bulls and the bears may witness a tough battle near $2,000, but the rising 20-day EMA ($1,895) and the RSI in the positive zone indicate that bulls have a slight edge. If buyers clear the hurdle at $2,000, the ETH/USDT pair may retest the overhead resistance zone between $2,142 and $2,200.
Another possibility is that the price turns down and drops to the 20-day EMA. If the price rebounds off this level, the bulls will again try to overcome the overhead obstacle.
The bears will have to tug the price below the 50-day SMA ($1,850) to weaken the bullish momentum.
BNB price analysis
BNB turned up from the 20-day EMA ($245) on July 13 and broke above the resistance line of the symmetrical triangle pattern.
BNB/USDT daily chart. Source: TradingView
The bulls continued the up move on July 14 and pushed the price above the 50-day SMA ($257), but the bears are posing a formidable challenge near the overhead resistance at $265. If the price turns down and reenters the triangle, it will suggest that the recent breakout may have been a bull trap. The pair may then plummet to the 20-day EMA.
On the contrary, if the price rebounds off the resistance line, it will suggest that the bulls have flipped the level into support. That will enhance the prospects of a rally above $265. The pair may then start its northward march to $280 and later to $300.
XRP price analysis
XRP skyrocketed above the overhead resistance of $0.56 on July 13. This meant the $0.30 to $0.56 range resolved in favor of the bulls. The pattern target of this breakout is $0.82, but the price overshot this level.
XRP/USDT daily chart. Source: TradingView
The XRP/USDT pair is facing profit booking near $0.94. Generally, a sharp rally is followed by a violent correction and a few days of consolidation. The bulls will try to arrest any pullback in the zone between the 38.2% Fibonacci retracement level of $0.75 and the 50% retracement level of $0.70.
If the price stays above this level, the pair may retest the overhead resistance at $0.94. Contrarily, a break below $0.70 could sink the pair to the 61.8% retracement level of $0.64. Such a deep fall may delay the start of the next leg of the uptrend.
Cardano price analysis
Cardano witnessed aggressive buying by the bulls on July 13, which drove the price above the immediate resistance of $0.30 and the 50-day SMA ($0.31).
ADA/USDT daily chart. Source: TradingView
That may have hit the stops on several bearish trades, triggering short covering. The price soared toward the target objective of $0.38 on July 14, but the long wick on the candlestick shows profit-booking by the bulls. The first support on the downside is at the 50% Fibonacci retracement level of $0.33.
If the price rebounds off this level, the bulls will once again try to overcome the hurdle at $0.38. If they succeed, the ADA/USDT pair may rally to $0.42. Contrarily, a break below the 61.8% retracement level of $0.32 could indicate weakening momentum.
Solana price analysis
After trading near the $22.30 resistance for a few days, Solana made a solid move on July 13. That pushed the price to the strong overhead resistance at $27.12.
SOL/USDT daily chart. Source: TradingView
The bulls continued their purchase on July 14 and thrust the price above $27.12. This pushed the RSI into deeply overbought territory, indicating that the rally may be extended in the near term. That may result in a short-term correction or consolidation.
The important level to watch on the downside is the breakout level of $27.12. If bulls flip this level into support, the SOL/USDT pair could start a strong rally to $39. Alternatively, if bears sink and sustain the price below $27.12, the pair could descend to $22.30.
Dogecoin price analysis
Dogecoin staged a strong turnaround on July 13 and surged above the moving averages. This shows that the bulls are attempting a comeback.
DOGE/USDT daily chart. Source: TradingView
The bulls are trying to sustain the price above the overhead resistance of $0.07. If they manage to do that, the DOGE/USDT pair could start a new up move. The pair may then rise to $0.08, where the bears will again try to stall the rally.
Contrary to this assumption, if the price turns down and breaks below $0.07, it could trap several aggressive bulls. The pair may then plummet to the moving averages. Such a move will suggest that the pair may remain range-bound for a few more days.
Litecoin price analysis
The bulls successfully held the 20-day EMA ($96) on July 12, indicating that the sentiment has turned positive in Litecoin and traders are buying on dips.
LTC/USDT daily chart. Source: TradingView
The rally has reached near $106, where the bulls are likely to face solid resistance. If buyers do not give up much ground from the current levels, it will increase the likelihood of a break above $106. The LTC/USDT pair could then retest the important resistance of $115. If this level is scaled, the pair may rally to $134.
This positive view will invalidate in the near term if the price turns down and closes below the 20-day EMA. The pair may then slump to the 50-day SMA ($90).
Polygon price analysis
The bears tried to pull Polygon back below the breakout level of $0.72 on July 12, but the bulls held their ground.
MATIC/USDT daily chart. Source: TradingView
That attracted huge buying on July 13, which propelled the price to $0.89, just shy of the pattern target of $0.94. The moving averages are on the verge of a bullish crossover and the RSI is near the overbought zone, indicating that bulls are in control. The up move could reach the psychological level of $1, where the bears are expected to mount a stiff resistance.
The important support to watch on the downside is the 20-day EMA ($0.72). A break and close below it will suggest that the bullish momentum is weakening.
Polkadot price analysis
Polkadot rebounded off the moving averages on July 13 and reached the overhead resistance at $5.64 on July 14.
DOT/USDT daily chart. Source: TradingView
The 20-day EMA ($5.20) has turned up slightly and the RSI has jumped into positive territory, indicating that bulls have the upper hand. The DOT/USDT pair will complete a bullish inverse head-and-shoulders pattern on a break and close above $5.64. That could start a new up move, which has a pattern target of $7.06.
If bears want to prevent the rally, they will have to drag and sustain the price back below $5.64. That may keep the pair range-bound between the 50-day SMA ($5.05) and $5.64 for some time.
