The failure of FTX has been the dark cloud looming over the entire cryptocurrency sector for the past month. The company, which was the second-largest cryptocurrency exchange by trading volume, filed for bankruptcy which shook the industry.
A sustained pattern has not yet developed on the hourly and weekly charts of the Bitcoin price and the daily charts are showing a modest upward bias, but it is yet to be confirmed. Bitcoin is still trading at roughly $17,150, down 0.60% in the last day, and has been staying steady at the $17,000 level.
The price, which is close to its one-month high of about $17,980, has given rise to speculations that BTC may be headed back up to $19,000 price levels.
Will Bitcoin Price Target the $20k level Soon?
BTC Price is predicted to reach $18,000 by the weekend. One can also expect to see the recovery continue into the US session. There are only two weeks left for the $20,000 level, so once the monthly pivot has been added to the bull camp, expect $19,036 to be the next target for the following week.
The inflation figures released on Tuesday could still come as a good surprise to the bears and suggest a divergence between the CPI and PPI where factory prices fall.
Expect the Fed to confirm that additional action is necessary to reduce inflation in an awkward address. Bulls in BTC would give up their positions, and the price would quickly fall toward $16,000 and perhaps even $15,000 in the days that followed.
As the markets wait patiently for the CPI data next week, the price of bitcoin is getting close to a significant level of resistance. The level of interest rates set by the US Federal Reserve could be a potential risk factor for the price of Bitcoin as these rates have an impact on two factors that are important to the price of BTC: the cost of borrowing and the value of the US Dollar.