The Q1 2022 witnessed multiple ups and downs fueled by multiple external factors. And despite all the odds Bitcoin showcased huge bullish momentum to stand strong close to $50,000 at the moment. However, on its path toward making a huge move, it appears that a small pullback close to $45,000 is much required for a healthy start of Q2 trade.
Bitcoin maintained a significant upward trajectory ever since it broke through the $40K mark after the first fortnight of March. It traded along with the lower bands of the ascending channel until it received a significant push a couple of days before. The upswing intended to breach through the channel but due to the escalated selling volume, the price remained consolidated. Currently, the BTC price is hovering along with the middle bands of the channel and displaying possibilities of plunging below these levels.
As seen in the chart, the BTC price is consolidating very hard around the $47,000 area that pointing to equal participation of bulls and bears. Interestingly the price is slowly forming an ascending pattern which flashes the possibilities to ranging below the average levels of the band. And hence shedding another $1000, the price could get a major boost to jump straight above $48,000 to begin a bullish start for Q2 trade.
If in case, the BTC price breaks through the consolidation and spikes towards the upper resistance of the channel, then fear of entering the same channel hovers. As $50,000 is expected to be a high liquidity area where a huge long liquidation may be set in place. Therefore, a slight plunge before reaching $50K may be safe as the bears may lose out their endurance and extract profits below these levels.