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.
Bitcoin Reaches Key Level And 2017 ATH
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?
Bitcoin price has touched $20,000 for the first time since the FTX collapse | BTCUSD on TradingView.com
BTCUSD Levels To Watch For 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.