Bitcoin price wipes out losses from FTX exchange collapse, hits $21,095 after two months

Bitcoin, the largest asset by market capitalization, has erased the bloodbath that hit the asset in the aftermath of Samuel Bankman-Fried’s exchange collapse. BTC hit a 24-hour high of $21,095 and technical analysts are watching the $21,500 area with interest. 

Also read: Peter Schiff urges Bitcoin holders to sell BTC above $19,000 after bullish start to cryptocurrencies in 2023

Bitcoin price recovers from Samuel Bankman-Fried’s FTX exchange induced bloodbath

Bitcoin, the largest cryptocurrency in the ecosystem and an asset with a market capitalization of $404.4 billion has made a comeback two months after the FTX exchange collapse. Samuel Bankman-Fried’s cryptocurrency exchange FTX collapsed in November 2022 when its native token FTT nosedived from $22 to $2 within less than five days. The contagion spread, bankrupting several cryptocurrency lenders, hedge funds and asset manager firms. 

Lost client funds triggered a bloodbath in Bitcoin, and whipsawed BTC from $21,000 to $15,000 in less than a week. After two months of sideways price action and bullish macroeconomic triggers like the recent US Consumer Price Index (CPI) reading that came in at market expectations 6.5%, BTC has erased its losses. 

The asset has climbed above the $21,000 hurdle and traders are watching the $21,500 area with interest. Technical analysts believe $21,500 is the make-it-or-break-it level for the cryptocurrency and affirm that the BTC bottom is in. 

BTCUSD Perpetual Contract chart

$18,000 is the target in the event of pullback in the asset. 

BTC/USD price chart 

As seen in the chart above, shared by technical analyst @CredibleCrypto, Bitcoin needs to hold above $16,500 and rebound from here for a continuation of its uptrend. Below $16,500, $15,500 is another level that marks Bitcoin’s low after the FTX bloodbath. 

@thescalpingpro, a crypto analyst agrees with @CredibleCrypto’s targets and bullish thesis.