Bitcoin price has tapped $20,000 for the first time since the FTX. Not only was the level important support that broke down during the contagion, but it was also the former 2017 all-time high.
Here’s what the recent price move could mean for the cryptocurrency market.
At approximately 6PM ET, Bitcoin price touched $20,000. Losing the level put stress on long-term holders by sending the price per coin tumbling to $15,800 and far below the former 2017 bull market peak.
After being rejected in 2017, cryptocurrencies fell into a long bear market. It wasn’t until December 2020 when Bitcoin once again made it above the critical level. And when it did, it blasted right through it to $60,000.
Once Bitcoin has reclaimed the level, what happens next?
Considering how bearish the sentiment was throughout 2022, crypto holders aren’t yet ready to FOMO into Bitcoin simply due to a break of $20,000. The top cryptocurrency may need to rally higher before the crowd begins to pile in.
Bitcoin above $28,000 could be a sign of a more sustainable recovery. Meanwhile, rejection at $20,000 again could be catastrophic for the crypto market and cause BTC to try for new lows.
Bitcoin price has tapped $20,000 for the first time since the FTX. Not only was the level important support that broke down during the contagion, but it was also the former 2017 all-time high.
Here’s what the recent price move could mean for the cryptocurrency market.
At approximately 5PM ET, Bitcoin price touched $20,000. Losing the level put stress on long-term holders by sending the price per coin tumbling to $15,800 and far below the former 2017 bull market peak.
Related Reading: Bitcoin Price Prediction: What Elliott Wave Theory Suggests Is Next For BTC
After being rejected in 2017, cryptocurrencies fell into a long bear market. It wasn’t until December 2020 when Bitcoin once again made it above the critical level. And when it did, it blasted right through it to $60,000.
Once Bitcoin has reclaimed the level, what happens next?
Bitcoin price has touched $20,000 for the first time since the FTX collapse BTCUSD on TradingView.com
Considering how bearish the sentiment was throughout 2022, crypto holders aren’t yet ready to FOMO into Bitcoin simply due to a break of $20,000. The top cryptocurrency may need to rally higher before the crowd begins to pile in.
Related Reading: Currency Expert Explains Why Altcoins Experience More Carnage Than Bitcoin And Ethereum
Bitcoin above $28,000 could be a sign of a more sustainable recovery. Meanwhile, rejection at $20,000 again could be catastrophic for the crypto market and cause BTC to try for new lows.
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com
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