NorthmanTrader founder Sven Henrich has noted that Bitcoin's bullish trend—which can be traced back all the way back to late 2020—has broken down.
Such a technical picture could signal a potential bullish-to-bearish reversal despite strong sentiment and fundamentals.
Bitcoin is not ready for higher highs
In early March, Bitcoin broke out of a falling wedge formation, which averted a further pullback.
On March 13, the cryptocurrency soared to a new all-time high of $61,781 on the Bitstamp exchange, but the rally quickly ran out of steam.
Following a few failed attempts to gain footing above $60,000, the cryptocurrency has since dipped to $52,933, its lowest level since March 9.
Two days ago, Henrich tweeted that Bitcoin had to log higher highs in order to avoid a trend break, but it has failed to extend its gains.
The chartist also called attention to Bitcoin's increasingly pronounced negative divergences:
Following the bullish falling wedge breakout (see thread below), Bitcoin needs new highs soon to maintain trend or risks a trend break as negative divergences are becoming more pronounced.
Bitcoin is still in the "greed" zone
Bitcoin's "fear-and-greed" gauge has dipped to a value of 66 but remains convincingly in the green.
This means that traders are not fearful just yet despite Bitcoin's three-day losing streak that resulted in a 14.4 percent correction from recent highs.