Bitcoin traders split on $40K chances as altcoins eye potential '80-150%' gains
|Bitcoin (BTC) circled $32,000 on July 22 after excitement over fresh comments by Elon Musk resulted in 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 which topped out above $32,800.
Thereafter, familiar resistance kicked in and $32,400 once more became the level to flip, a feat which 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 would boom if Bitcoin takes off
Altcoins likewise cemented gains which commonly ranged between five and ten percent on the day.
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 cap, 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.