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BTC/USD is still ranging, but conditions may be favourable for a late surge to range highs above $40,000.
Bitcoin (BTC) surpassed $32,000 on Thursday as a result of increased support from Elon Musk’s recent comments.
BTC bulls regroup at $32,000
Data from 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 previously reported, Musk’s words came across as more positive and less critical than many had anticipated, resulting in a brief price surge that topped out above $32,800.
Following that, familiar resistance kicked in, and $32,400 became the level to flip once more, a feat that Bitcoin has yet to accomplish.
Nonetheless, previous gains from below $30,000 remained intact, and there was little indication of a major retracement on the way on Thursday.
“If we look at the price action of Bitcoin, we can clearly see and state that we’re holding above $31K,” 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.”
Keith Wareing, an independent analyst and trader, was unconcerned about the Musk incident. He contended that because no resistance levels had truly cracked, nothing fundamental had changed in the short-term BTC price landscape.
#bitcoin dropping after the weekly candle opened below the structure I’ve been watching for a few weeks now.
I expect a bounce between $24k – $29k largely due to the CME gap at $24615.
After that, my guess at a bear market bottom would be $12k give or take $2k either side. pic.twitter.com/aMi2M45bmf
— Keith Wareing (@officiallykeith) July 19, 2021
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.
Van de Poppe: Altcoins will boom if Bitcoin takes off
Altcoins also cemented gains, which typically ranged between 5% and 10% on the day.
Dogecoin (DOGE), which began its rise ahead of Musk’s appearance, was still trading below $0.20 at the time of writing, with daily returns approaching a more modest 8%.
Van de Poppe went on to say that a scenario in which Bitcoin reaches range resistance at $40,000 or higher would have a much greater impact on altcoin markets.
“This would cause altcoins to surge by 80-150 percent from here,” he predicts.
After briefly losing its 2021 higher lows trend earlier in the week, Ether (ETH), the largest altcoin by market capitalisation, was back at $2,000, launching away from support levels.