Analysts Remain Optimistic of an Imminent BTC Price Surge despite Current Pullback

Bitcoin is trading in a short-term bearish zone after it tanked below $40K on Aug 3 as bulls failed to force a breakout above the $42K level. The coin hit highs of $42,435 on Aug 1 following three days of convincing attempted breakouts above that stubborn resistance, but upward momentum is now fading.

BTCUSD has broken below $38.4K at press time after shedding 4% off its gains in the past 24 hours. After breaking below the $39,200 support levels in today’s early sessions, the pair struggled to recover and is currently changing hands at $38,263 during press time.

The world’s first crypto had seen muted volatility since the mid-May crash before bulls mounted an incredible comeback that took prices above $42K last weekend. The BTC price is now attempting to hold $38K after market sentiment flipped slightly bearish at the start of the week.

Altcoin Psycho argued in a recent tweet that bitcoin must reclaim the $41K level to sustain a rally toward $49K. The analyst predicts that if bulls lose the $36K support, traders can expect further losses below $29K. 

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Where are BTC Prices Headed?

In the last week, bitcoin prices rose above the upper limit of the long-held $30K-$40K range before parrying gains as bulls faced some intense resistance. However, the flagship crypto’s lack of a clear trend in the recent past has left investors in the dark on the coin’s next move.

And now, several respected analysts have stepped in to shed some light on BTC’s price action in the near and long term.

According to on-chain analyst Willy Woo, the BTC price is set to explode higher, arguing that the bulls’ ability to reclaim three-month highs after a devastating crash below $30k was significant.

“The price is pinned close to the $40k-$42k ceiling over a period of days (2 weeks maximum) wearing down sellers, followed by a faster move to $50k,” the popular analyst predicted in his latest newsletter.

William Noble, the chief technical analyst of Token Metrics, struck a similar tone, suggesting that the recent pullback is likely a pause before bitcoin registers fresh gains. However, he noted that the dip presents an excellent opportunity for investors who missed out earlier to buy the dip.

ETH Retests the $2,460 Support

Smart contract token ETH followed bitcoin’s footsteps closely as it retraced below the $2,600 support level. The altcoin is currently down 3.7% to trade at $2,489, per data from coinmarketcap.

However, Dan Morehead, the head at Pantera Capital, predicts that prices will go higher as investors start storing value in Ether as much as in BTC, following the EIP 1559 upgrade. 

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The looming improvement is expected to introduce a minimum fee for users sending transactions on Ethereum, drastically slashing crippling gas fees that hinder optimal network usability.