Bitcoin (BTC) rounded $ 32,000 on Thursday after excitement over new comments from Elon Musk caused support to increase.
BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC bulls group at $ 32,000
Data from Cointelegraph Markets Pro and TradingView showed BTC / USD hovered between $ 31,500 and $ 32,000 overnight on Wednesday after Musk joined others in praising Bitcoin during a conference panel.
As Cointelegraph reported, Musk’s words were broadly received positively and less critically than many had assumed – this in turn resulted in a brief price spike of over $ 32,800.
After that, the familiar resistance kicked in and $ 32,400 was once again the level that had to be flipped, a feat that Bitcoin has yet to achieve.
That said, past gains below $ 30,000 remained intact, and there was also little evidence that any major retracement would set in on Thursday.
“If we look at the price history of Bitcoin, we can clearly see and determine that we are holding over $ 31,000,” said Cointelegraph employee Michaël van de Poppe.
“If it stays that way and the market allows a higher low, I think we have hit a temporary low and will test $ 40,000.”
Independent analyst and retailer Keith Wareing was neutral on the Musk episode. He argued that nothing has fundamentally changed in the short-term BTC pricing landscape as no resistance levels have really been cracked.
Elon pump (yay)
Rejected, bang, literally fucking to the handle (booo)
But TA is a lot of bullshit so it doesn’t mean anything, does it?
Wake me up if we break and close above $ 42,300 or it’s still Chopsville pic.twitter.com/58V1cO0txq
– Keith Wareing (@officiallykeith) July 22, 2021
As such, the long and short positions among traders also continued their trend from earlier in the week – with the $ 33,000 addition slowly creating a resistance zone and the reverse kicking in at $ 31,000 support.
BTC / USD buy and sell levels (Binance) as of July 22nd. Source: Material Indicators / Twitter
Van de Poppe: Altcoins will boom when Bitcoin takes off
Altcoins also cemented gains, which were typically between 5% and 10% on the day.
Related: Altcoins Hedge Double Digit Profits After Bitcoin Soared Towards $ 33,000
Dogecoin (DOGE), which began its launch before Musk was released, was trading below $ 0.20 at the time of writing, with daily returns approaching a more modest 8%.
Van de Poppe added that a scenario where Bitcoin rises to a resistance of $ 40,000 or more would have a much stronger impact on the altcoin markets.
“This would mean that altcoins would run 80-150% from here,” he predicted.
Ether (ETH), the largest altcoin by market cap, was back at $ 2,000 and started away from support levels after briefly losing its higher 2021 low trend earlier in the week.
ETH / USD 1-day candle chart (Bitstamp). Source: TradingView