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Bitcoin traders split on $40K chances as altcoins eye potential ‘80%–150%’ gains

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 305 Views

Ranging continues for BTC/USD, but conditions may be right for a late surge to range highs above $40,000.

Bitcoin (BTC) circled $32,000 on Thursday after excitement over fresh comments by Elon Musk resulted in the strengthening of support.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC bulls regroup at $32,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD ranging between $31,500 and $32,000 overnight on Wednesday hours after Musk joined others in praising Bitcoin during a conference panel.

As Cointelegraph reported, Musk’s words came over broadly positive and less critical than many had assumed they would be — this, in turn, led to a brief price surge that topped out above $32,800.

Thereafter, familiar resistance kicked in, and $32,400 once more became the level to flip, a feat that Bitcoin has yet to achieve.

Nonetheless, previous gains from below $30,000 remained intact, and there was equally little evidence of a major retracement about to kick in on Thursday.

“If we look at the price action of Bitcoin, we can clearly see and state that we’re holding above $31K,” Cointelegraph contributor Michaël van de Poppe said.

“If that sustains, and the market grants a higher low, I think we’ve found a temporary bottom & we’ll test $40K.”

Independent analyst and trader Keith Wareing was neutral about the Musk episode. He argued that since no resistance levels had truly cracked, nothing had fundamentally changed in the short-term BTC price landscape.

As such, buy and sell positions among traders likewise continued their trend from earlier in the week — with the addition of $33,000 slowly forming a resistance zone and support conversely stepping in at $31,000.

BTC/USD buy and sell levels (Binance) as of July 22. Source: Material Indicators/Twitter

Van de Poppe: Altcoins will boom if Bitcoin takes off

Altcoins likewise cemented gains which commonly ranged between 5% and 10% on the day.

Related: Altcoins secure double-digit gains after Bitcoin surges toward $33K

Dogecoin (DOGE), which began its run-up ahead of Musk’s appearance, traded still below $0.20 at the time of writing, with daily returns nearing a more modest 8%.

Van de Poppe added that a scenario under which Bitcoin rises to range resistance at $40,000 or higher would have a much more pronounced impact on altcoin markets.

“This would lead altcoins to run 80-150% from here,” he forecast.

Ether (ETH), the largest altcoin by market capitalization, was back at $2,000, launching away from support levels after briefly losing its 2021 higher lows trend earlier in the week.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView


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