Many altcoins could pick up momentum If Bitcoin and Ethereum break above key resistance levels in the coming days.

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Since March central banks have been printing money aggressively in order to combat the economic downturn brought about by the coronavirus pandemic.

Philip Lowe, the governor of the Australian Reserve Bank, has warned against the consequences of unlimited monetary expansion. Lowe said that “there is no free lunch,” and somebody always has to pay for the money printing “in one form or the other.”

The European Union has also agreed on a massive recovery fund of about $857 billion to buoy the social and economic crisis caused due to the coronavirus pandemic. In response, gold again broke out to a new yearly high, which shows that with every new announcement of a stimulus, investors are piling on gold.

Daily cryptocurrency market performance

Daily cryptocurrency market performance. Source: Coin360


Most investors buy gold because they are looking for a way to preserve their wealth against the devaluation of fiat currencies. However, as gold continues to climb, investors might start looking for other assets where they can find considerable value. This is when Bitcoin (BTC) could come into greater focus.

The next bull run in the top-ranked asset on CoinMarketCap is likely to be a sustained up-move, unlike the vertical rally seen during the previous bull market in 2017. Hence, crypto investors should be patient with their holdings.

Bitcoin (BTC) broke above the moving averages with a large range move on July 21, which suggests that some bulls are buying aggressively. If they can push the price above the immediate overhead resistance at $9,500, several traders waiting on the sidelines are likely to jump in.

BTC/USD daily chart

BTC/USD daily chart. Source: TradingView


Above $9,500, the bears will again try to stall the up move in the $10,000–$10,500 zone, but if the bulls can clear this hurdle, a new sustained up move is likely.

The ascending triangle pattern is still intact, which will complete on a breakout and close (UTC time) above $10,376.38. This pattern has a target objective of $11,870.50.

Contrary to the assumption, if bulls fail to propel the price above $9,500, the BTC/USD pair might again drop to the trendline of the triangle. A break below this support will invalidate the bullish pattern and could result in a drop to $8,800.

Ether’s (ETH) up-move on July 21 has carried it close to the overhead resistance zone of $249.195–$253.556. If the bulls can propel the price above the zone, the next leg of the uptrend is likely to resume.

ETH/USD daily chart

ETH/USD daily chart. Source: TradingView

The first target is a rally to $288.599, which might act as resistance but if the bulls can clear this hurdle, the second-ranked cryptocurrency on CoinMarketCap is likely to extend the rally to $366.

Conversely, if the bulls fail to propel the ETH/USD pair above $254.556, a few more days of range-bound action is likely. The trend will turn in favor of the bears if the support at $216.006 gives way.


The bears again tried to sink XRP below the moving averages on July 20 but the bulls purchased the dip to the 50-day simple moving average ($0.19), which shows accumulation at lower levels.

XRP/USD daily chart

XRP/USD daily chart. Source: TradingView

Currently, the bulls are facing resistance at the downtrend line but if they can scale the price above it, the fourth-ranked cryptocurrency on CoinMarketCap could start its journey towards the next target of $0.214616.

The XRP/USD pair is showing first signs of forming an inverse head and shoulders pattern, which will complete on a breakout and close (UTC time) above the neckline at $0.21.

Contrary to the assumption, if the pair turns down from the current levels and plummets below $0.188499, a drop to $0.17 is possible.

After staying close to the $217.55 levels for the past few days, Bitcoin Cash (BCH) bounced on July 21, which shows some accumulation closer to these levels. However, the bulls are facing resistance at the moving averages.


BCH/USD daily chart

BCH/USD daily chart. Source: TradingView

If the bulls can push the fifth-ranked cryptocurrency on CoinMarketCap above the moving averages, a move to $246 is possible. The bears are likely to defend this level aggressively.

If the price turns down from this resistance, the BCH/USD pair could remain range-bound between $217.55 and $246. The flat moving averages and the relative strength index close to the midpoint also support this view.

A break above $246 could shift the advantage in favor of the bulls while a break below $217.55 might indicate that the bears have the upper hand.

The failure of the bears to capitalize on the break below the $170 support on July 19 and 20 attracted buying from the aggressive bulls who pushed Bitcoin SV (BSV) above the downtrend line on July 21.

BSV/USD daily chart

BSV/USD daily chart. Source: TradingView

Now, the onus is on the bulls to make use of this opportunity and carry the sixth-ranked cryptocurrency on CoinMarketCap to the overhead resistance of $200. Above this level, a move to $227 is possible.

Instead, if the bears again sink the price below the downtrend line, a drop to $170 is likely. Both moving averages are flat and the RSI is close to the midpoint, which suggests that the range-bound action is likely to extend for a few more days.


Cardano (ADA) bounced off the 20-day exponential moving average ($0.116) on July 21, which is a positive sign as it shows that the bulls are buying the dips to strong support levels because they expect the uptrend to resume.

ADA/USD daily chart

ADA/USD daily chart. Source: TradingView

A breakout and close (UTC time) above the pennant and the $0.1380977 resistance will signal the possible resumption of the uptrend. The seventh-ranked cryptocurrency on CoinMarketCap can then rally to $0.173 and above it to $0.20.

In this leg of the up move that started on April 22, the pullbacks to the 20-day EMA have worked as a good entry point to the bulls.

This positive view will be negated if the ADA/USD pair turns down and breaks below the 20-day EMA and the $0.11 support. Below this level, a drop to the 50-day SMA ($0.097) is possible.

Litecoin (LTC) broke above the 20-day EMA ($43.13) on July 21, which shows that the bulls are trying to make a comeback. The first sign of strength will be a breakout and close (UTC time) above $46 and the momentum is likely to pick up above $51.