Bitcoin (BTC) circled $32,000 on Thursday after excitement over fresh comments by Elon Musk resulted in the strengthening of support.
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.
Elon pump (yay)
Rejected bang on, literally bang fucking on the handle (booo)
But TA is a load of bullshit so it means nothing right?
Wake me up when we break and close above $42300, otherwise it’s still chopsville pic.twitter.com/58V1cO0txq
— Keith Wareing (@officiallykeith) July 22, 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 likewise cemented gains which commonly ranged between 5% and 10% on the day.
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.