Bitcoin price lures short-sellers before pulling the rug and returning to $50,000
|- Bitcoin price closed yesterday’s daily candlestick above the 50% Fibonacci retracement.
- Sideways trading may occur over the next five days.
- BTC is very close to confirming its most bullish entry condition since October 2021.
Bitcoin price continues to press higher and higher, shaking off multiple intraday sell-off attempts with responsive buying pressure. However, as the week transitions to Thursday and Friday, the importance of where Bitcoin closes on the weekly chart becomes more and more critical.
Bitcoin price on the path to $50,000 - but it must break the $45,000 resistance cluster to do it
Bitcoin price action, in a nutshell, remains very bullish, with persistent bulls staving off bearish selling pressure. The path forward for bulls is easy: achieve a weekly close at or above $45,000. The resistance levels are almost negligible, between $45,000 and $50,000.
Significant bullish momentum has returned to the cryptocurrency space, with many calls for #AltSeason to begin - an event that is equally bullish for Bitcoin. If the sentiment continues and sidelined crypto buyers experience FOMO, Bitcoin can quickly reach the $50,000 price level.
BTC/USD Daily Ichimoku Kinko Hyo Chart
However, Bitcoin price does have some major downside risks. BTC is trading inside a bear flag, a major bearish continuation pattern. If BTC continues to move higher, it will hit the strongest current resistance cluster on its chart at $45,000.
The $45,000 value area contains the 61.8% Fibonacci retracement at $44,650, the top of the weekly Ichimoku Cloud (Senkou Span A) at $45,000, and the top of the bear flag at $45,100. If Bitcoin price fails to breach this level and is rejected, another round of selling may commence, with bears trapping bulls and pursuing a move below the Ichimoku Cloud at $37,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.