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“Easy come, easy go” was the story on July 20. The day started on a positive note with Bitcoin (BTC) climbing above $24,300, only to end the official trading day in the red after less than stellar Q2 earning news showed Tesla sold 75% of its Bitcoin and Minecraft creator Mojang Studios reversed course by deciding to ban NFTs on its platform.

A potential source of the afternoon downturn can be traced to Tesla’s Q2 earnings data, which showed that the electric car company sold off 75% of its Bitcoin holdings in order to add $963 million in cash to its balance sheet.

Shortly after the Tesla news broke, Bitcoin price pulled back from its daily high of $24,280 to $22,900, before stabilizing around $23,500.

Related: Bitcoin price hits $24K, but analysts say on-chain data points to an ‘inevitable’ pullback

Today's unexpected pullback may have also helped to bring a little market perspective to crypto traders who were ready to call for an end to the bear market.

Bitcoin (BTC) briefly extended its recovery above $24,000 and the altcoins continued to make smart gains on July 20, but the bullish momentum of the week experienced a brief setback after Tesla's earnings report showed the company had sold 75% of its BTC position.

Although the sharp breakout of this week is a positive sign, analysts were quick to point out that a sustained recovery depends on a strong performance from Wall Street. Analyst Venturefounder pointed out that the rally was largely macro-driven and Bitcoin’s correlation with NASDAQ remained at a historical high of 91%.

Bitcoin’s sharp rally in the past few days has awakened hibernating bulls who are dishing out lofty targets. Analyst TechDev projected a target of $120,000 in 2023, while Galaxy Digital CEO Mike Novogratz told a Bloomberg conference on July 19 that Bitcoin could soar above $500,000 within the next five years.

Nevertheless, analysts remain divided in their near-term expectations and some are unconvinced that the trend has turned. These traders believe that the current rise is a bear market rally. On the other hand, some analysts expect the up-move to continue in the short term. On-chain data firm Whalemap suggests that the rally could extend to $27,100.

Could Bitcoin and major altcoins continue their rise or will bears trap the bulls and sink the price lower? Let’s study the charts of the top 10 cryptocurrencies to find out.

Cryptocurrency investors continue to enjoy this week's bullish price action after Bitcoin (BTC), Ether (ETH) and a handful of altcoins rallied on July 20 alongside gains in the traditional markets. 

Data from Cointelegraph Markets Pro and TradingView shows that a midday rally by Bitcoin bulls managed to lift the top crypto to a daily high of $24,281, which sparked a new round of bullish proclamations on Crypto Twitter.

While the week-long climb has helped boost investor sentiment, several analysts are warning traders to not get too far ahead of themselves because the market is still providing some red flags worth taking note of.

Prepare for an inevitable pullback

Bitcoin’s climb above $24,000 officially confirmed a breakout from the previous trading range between $18,000 and $22,500, according to market analyst Caleb Franzen, who posted the following chart noting the question the market now faces. 

Franzen said,