Bitcoin price was an inch close to hitting the strong resistance levels close to $50,000. Yet the fresh dips dragged the price below the crucial support area. The newly formed price movements could have created an alarming situation yet many believe it’s just a healthy correction. Despite the plunge, BTC price is attempting hard to regain the lost positions above these levels.
The asset was following a steep uptrend since the market flipped the bears a month ago, forming a rising wedge. No doubt the price inculcated a narrow trend since the altcoins started swelling, but a pullback appeared imminent. The price had to fall to break the rising wedge and after a slight consolidation, it could resume its bull run.
With the recent rejection, the price yet again consolidated within a triangle. The accumulation could continue for some more time before smashing $50,000 levels. Moreover, after plunging for more than 3 days in a line, the buyers utilized the dip opportunity. And hence a buying pressure seems to have a mounting that could prevent the price from plunging below $45,000.
As the price experienced a healthy correction, the much-awaited Golden cross seems to have been pushed to the next month. This event could provide the price with a substantial push that could fuel the bull rally towards the set target. Amid the current downtrend, where many look forward to the price to hit $42,000 or below, some still believe BTC price could hit $100K by the end of 2021.
Therefore, the current plunge could be short-lived as an outcome of healthy correction. On the contrary, some of the altcoins appear to have build up strength and hence resulting in the narrow trend of BTC price. However, the Bitcoin price could jump with a massive leg up soon to hit $50,000 initially as the focus turns back on the asset.