Bitcoin price lures short-sellers before pulling the rug and returning to $50,000

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.