Bitcoin’s price could benefit as FTX begins distributing $11.7 billion to creditors on Tuesday. Market speculation suggests that a portion of these funds may rotate back into the crypto market, potentially fueling a BTC rally.
Despite a lackluster performance over the past two months, Bitcoin’s technical indicators, including a cup and handle pattern and a bullish flag formation, hint at an imminent breakout.
While some analysts anticipate increased liquidity from FTX repayments to drive Bitcoin demand, others argue that the distributions may have already been priced in. Uncertainty remains over whether creditors will reinvest in Bitcoin, altcoins, or traditional assets. Nonetheless, Bitcoin has remained above the 100-week Exponential Moving Average (EMA), signaling that the overall uptrend is intact.
From a technical perspective, Bitcoin’s price forecast points to an initial target of $108,100 if the bullish flag pattern plays out. A breakout above this level could push BTC toward $122,000, aligning with the cup and handle formation’s measured move. However, a failure to sustain upward momentum could trigger a drop to $90,500 or even $68,910, the previous resistance level. As traders monitor these developments, the FTX repayments could be a pivotal event for Bitcoin’s price action in the coming weeks.
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