Analysis: If Bitcoin rises to $40,000, altcoins could rise “80%-150%”

Bitcoin continues to fluctuate, but conditions may be ripe for a late surge to highs above $40,000.

Market Trends On Thursday, Bitcoin gained more support and excitement following Elon Musk's latest comments, which subsequently sent the price of Bitcoin surging to $32,000.

BTC/USD 1-hour candlestick chart (Bitstamp) Source: TradingView

Bitcoin bulls regroup at $32,000 Bitcoin was trading between $31,500 and $32,000 on Wednesday evening, according to data from Cointelegraph Markets Pro and TradingView, just hours after Musk joined others in praising Bitcoin on a conference panel.
As Cointelegraph reported, many had expected Musk to be critical of Bitcoin, but instead Musk’s comments were generally positive — which in turn led to a brief spike in Bitcoin’s price, which peaked at $32,800.
After this, familiar resistance begins to emerge, with $32,400 once again acting as resistance, a feat that Bitcoin has yet to achieve.
Despite this, Bitcoin has remained above $30,000 and showed few signs of a major pullback on Thursday.
“If we look at Bitcoin’s price action, we can clearly see that it is holding above $31,000,” said Cointelegraph contributor Michaël van de Poppe.
“If this continues and the market makes a higher low, I think a temporary bottom has been formed and Bitcoin will test $40,000.”
Independent analyst and trader Keith Wareing is neutral on Musk's event. He believes that since there is no real breakthrough of the resistance level, there has been no fundamental change in the price outlook of Bitcoin in the short term.
As a result, traders’ long and short positions are also continuing the trend from earlier this week – with a resistance zone slowly forming at $33,000, while support is seen at $31,000.

BTC/USD buy and sell levels as of July 22 (Binance) Source: Material Indicators/Twitter

Van de Poppe: If Bitcoin takes off, altcoins will rise sharply Altcoins also consolidated their gains of 5% to 10% on the day.
Dogecoin (DOGE), which began to rally before Musk’s speech, is still trading below $0.20 at press time, up nearly 8%.
Van de Poppe added that if Bitcoin rises to the $40,000 resistance zone or higher, it will have a more noticeable impact on the altcoin market.
“This will cause altcoins to rise 80-150% from their current prices,” he predicted.
Ethereum (ETH), the largest altcoin by market cap, has reclaimed $2,000 after briefly losing its 2021 higher lows trend earlier this week and continued to rise from support.

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