Bitcoin traders are split on $40K chances, while altcoins are eyeing potential ‘80% –150% ‘ gains.

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

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.

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.

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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 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.

 

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

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