Altcoins have been buzzing around this week and this has reduced Bitcoin’s (BTC) dominance to 63%. Pantera Capital founder Dan Morehead believes that altcoins are going to outperform Bitcoin, the top-ranked asset on CoinMarketCap, over the next couple of years. This does not mean that Morehead is negative on Bitcoin price because he clarified that the firm expects Bitcoin to “to go up a ton, but altcoins will go up even more.”

However, investors should be careful about what they invest because pump and dump schemes and liquidity issues continue to plague many altcoins. Take for example, the recent TikTok challenge which saw Dogecoin (DOGE) price pump by more than 60% in 24-hours.

Such challenges, when not backed by strong fundamentals, might end in disaster for several investors. As a caution against risky investing, the operator of the @Dogecoin Twitter account appealed to investors and urged them to do their due diligence before buying instead of falling for “FOMO or manipulation.”

Daily cryptocurrency market performance. Source: Coin360

Due to Bitcoin’s range-bound action, crypto derivatives volumes have dropped 35.7% in June, according to a CryptoCompare report. However, Bitcoin options trading volume on the Chicago Mercantile Exchange rose to an all-time monthly high in June.

Options trading is difficult to decipher because the experts adopt various complicated strategies using several strike prices. Therefore, traders should not get carried away if they see an extreme out of the money call option being purchased.


After stalling at the 50-day simple moving average ($9,376) for the past two days, Bitcoin (BTC) has risen above the resistance which is a positive sign as it indicates demand at higher levels. 

BTC/USD daily chart. Source: TradingView

If the bulls can sustain the price above the 50-day SMA, a rally to $9,795.63 and then to $10,000 is possible. Currently, both moving averages are flat and the relative strength index is just above 50, which points to range-bound action for a few more days.

This view will be invalidated if the bulls can propel the BTC/USD pair above $10,000–$10,500 resistance zone. However, this looks like an uphill task as of now.

The trend will turn in favor of the bears if the pair turns down from the current levels and slides below the trendline of the ascending channel. If that happens, a deeper correction to $8,130.58 is possible.


Ether (ETH) continues to consolidate between $216.006–$253.556. The bulls will attempt to push the price above the overhead resistance of $253.556. If they succeed, the uptrend is likely to resume with the next target objective at $288.599.

ETH/USD daily chart. Source: TradingView

Both moving averages are sloping up and the RSI has risen above 60, which suggests that bulls have the upper hand.

However, the bears are likely to mount a strong defense at the overhead resistance of $253.556. If the second-ranked cryptocurrency on CoinMarketCap turns down from this level, it could continue its range-bound action for a few more days.

The first sign of weakness will be a break below both moving averages and the ETH/USD pair is likely to turn negative on a break below $216.006.


XRP dipped on July 7 but found support at the 20-day exponential moving average ($0.184). This is a positive sign as it shows that the sentiment has turned bullish and the buyers are using dips to accumulate at lower levels.

XRP/USD daily chart. Source: TradingView

Today, the relief rally resumed when the bulls pushed the fourth-ranked cryptocurrency on CoinMarketCap above the downtrend line. The first target is $0.214616 and if this is also crossed, the rally can extend to $0.235688.

On the downside, the bulls are likely to defend the 20-day EMA, which has started to turn up and the RSI has jumped into the positive territory. This suggests a minor advantage to the bulls.

This positive view will be invalidated if the bears sink the XRP/USD pair back below the downtrend line and the 20-day EMA.


Bitcoin Cash (BCH) has been facing resistance at the $245.49 level for the past two days but the bulls have not allowed the price to dip below the 50-day SMA ($237), which is a positive sign.

BCH/USD daily chart. Source: TradingView

The bulls are likely to push the fifth-ranked cryptocurrency on CoinMarketCap above $245.49, which can result in a rally to $260 and above it to $280.47. A break above this resistance can propel the BCH/USD pair to $360.

This view will be invalidated if the pair turns down from $260 or $280.47. In such a case, the pair is likely to extend its stay inside the range.


Since the 26.12% rally on July 6, Bitcoin SV (BSV) has been consolidating the gains. The positive thing is that the altcoin has not even broken below the immediate support at the 50-day SMA ($180).

BSV/USD daily chart. Source: TradingView

This suggests that the bulls are not closing their positions in a hurry because they anticipate the sixth-ranked cryptocurrency on CoinMarketCap to eventually break out of $200 and rally to the next target of $227. The bulls might attempt this move within the next couple of days.

If the momentum can pick up and the buyers can propel the BSV/USD pair above $227, a new uptrend is likely. The target objective of such a move is $308.

However, bears are likely to have other plans as they will try to sink the BSV/USD pair below the moving averages. If successful, it will suggest that the July 6 rally was an aberration.


Cardano (ADA) broke above the stiff overhead resistance zone of $0.10–$0.11 on July 7, completing a huge bottoming process that has a minimum target objective of $0.20.

ADA/USD daily chart. Source: TradingView

However, after breaking out of such a long bottom, the price usually retests the breakout level, which in this case is $0.11. If the bulls purchase the dip to $0.11, it will indicate the formation of a new floor at that level.

Conversely, if the seventh-ranked cryptocurrency on CoinMarketCap breaks below the $0.11–$0.10 support zone, it will suggest that the current breakout was a bull trap.

The sharp rally of the past few days has propelled the RSI to 80 levels, which has usually signaled a short-term top. Therefore, it is better to wait for a correction to buy on dips rather than chase prices higher as the risk to reward ratio is skewed to the downside.


Although the bears defended the 50-day SMA ($44) on July 6 and 7, they could not sink Litecoin (LTC) below the 20-day EMA ($43), which suggests accumulation on dips.

LTC/USD daily chart. Source: TradingView

Today, the bulls have pushed the eighth-ranked cryptocurrency on CoinMarketCap above the 50-day SMA. There is a minor resistance at $45.3501 but if the bulls can push the price above this, a move to $51 will be on the cards.

The gradually upsloping 20-day EMA and the RSI in the positive zone also suggest an advantage to the bulls.

However, if the LTC/USD pair turns down from $45.3501, it can dip to the 20-day EMA. A break below this support will signal weakness.


Binance Coin (BNB) has risen sharply for the past three days, which suggests that bulls are back in the game. The up-move has scaled above both moving averages and is on its way to the next resistance at $18.1377.

BNB/USD daily chart. Source: TradingView

If the momentum sustains, the ninth-ranked crypto-asset on CoinMarketCap can break above $18.1377 and rally to $21.50. The 20-day EMA ($16) has started to turn up and the RSI has risen above 60 levels, which suggests an advantage to the bulls.

However, the bears are unlikely to throw in the towel easily. They will attempt to stall the rally at $18.1377 as they have done twice before (marked using ellipse on the chart). Therefore, traders should keep an eye on this level because if the BNB/USD pair turns down from it, the range-bound action is likely to extend for a few more days.

CRO/USD Coin (CRO) has continued its journey northward, which shows demand at higher levels. This up move can reach $0.15306, which is the intraday high made during the spike on July 12 of last year.

CRO/USD daily chart. Source: TradingView

The bears are likely to defend the $0.15306 level aggressively, resulting in a minor correction or a consolidation. A break below the 20-day EMA ($0.12) will be the first indication of a deeper pullback.

Conversely, if the momentum picks up and the bulls propel the 10th-ranked cryptocurrency on CoinMarketCap above $0.15306, the next target is $0.20.


EOS corrected on July 7 but did not give up much ground, which shows that the bulls bought the dips and were in no hurry to close their positions. The bulls have pushed the price above the immediate resistance of $2.6209 today.

EOS/USD daily chart. Source: TradingView

The 11th-ranked cryptocurrency on CoinMarketCap can now rally to $2.8319 and if the momentum sustains, the possibility of a break above this overhead resistance increases. If the EOS/USD pair closes (UTC time) above $2.8319, the rally can extend to $3.1104.

However, the bears are likely to mount a strong defense at $2.8319. If the pair turns down from this level, it could remain range-bound for a few more days. As long as the price remains above the moving averages, the bulls hold a minor advantage over the bears.

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.