Bitcoin Breaks Past $20,000 Barrier, Rallies 24% In Last Seven Days Post-FTX Mess

Bitcoin is showing some renewed energy. As of writing, the highest cryptocurrency is trading at $20,883, leading the crypto market to rally as optimistic investors enter the market.

This will seem as a surprise, but with the Consumer Price Index (CPI) data showing an improving economic trend, an additional upwards break is feasible for BTC. 

Analysts say that if BTC breaks through this significant resistance, the beginning of the bull market is at hand. Nevertheless, rejection from this resistance is imminent at time of writing. Can Bitcoin overcome this in the following few days?

Bitcoin About To Hit $21K Mark

In the course of the collapse of FTX, Bitcoin lost 27% of its value, and so did most crypto available in the market. With the coin nearly breaking through the $21k price resistance, a big number of short positions on BTC have been liquidated. 

This recent retest sparked speculation that the following bull market is simply just a few days ago. On Twitter, the community is totally bullish on their bull market hypothesis. Rekt Capital, a crypto analyst on Twitter, recently noted that the present candle is identical size because the one which confirmed the bull market back in 2019. 

Although past performance doesn’t necessarily predict future outcomes, this can be a very bullish insight into what BTC’s price movement can be in the approaching days or perhaps weeks. Together with improving macroeconomic trends, Bitcoin has a number of headroom to push upwards.

Resistance Ahead 

Moving forward, it seems as if the bullishness of the coin has met strong resistance on the $21,300 level. This resistance has been further strengthened through fears of a worldwide recession happening.

In line with the World Bank, inflation in emerging economies and advanced economies remain high, leading the world to the brink of a worldwide recession. With that in mind, investors and traders should definitely watch global macro trends as this could also affect their portfolio. 

BTC total market cap at $397 billion on the weekend chart | Chart: TradingView.com

But with the markets optimistic of an economic soft landing– especially after the positive Consumer Price Index report – we are able to expect Bitcoin to no less than break through for some time then enter a correction phase in the following few days or perhaps weeks. 

Investors and traders must also watch the charts for any signs of a correction. But with the coin being overbought throughout the early stages of the market rally, buyer fatigue will not be removed from happening.

Investors and traders might consider selling their Bitcoin at current market price or higher to generate profits. 

-Featured image by Smithsonian Magazine

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