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 continuation pattern has yet to develop on the hourly and weekly charts of bitcoin price and the daily charts are showing a slight uptrend, but this is yet to be confirmed. Bitcoin is still trading at $17,150, down 0.60% on the previous day, and holding 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. The recovery can also be expected to continue in the US session. There are only two weeks left for the $20,000 level, so once the monthly pivot is added to the bull camp, expect the next target for the coming week to be $19,036.
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 needed to tame inflation at a strange address. The bulls will abandon their positions in BTC and the price will decline sharply towards $16,000 and possibly $15,000 in the coming days.
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.
