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Bitcoin Has Broken Its Bullish Trend, According to NorthmanTrader's Sven Henrich

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Tue, 03/23/2021 - 14:16
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Alex Dovbnya
Is the ongoing bull market over? NorthmanTrader's Sven Henrich says Bitcoin has broken its bullish trend
Bitcoin Has Broken Its Bullish Trend, According to NorthmanTrader's Sven Henrich
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NorthmanTrader founder Sven Henrich has noted that Bitcoin's bullish trendβ€”which can be traced back all the way back to late 2020β€”has broken down.

a broken trend
Image by @NorthmanTrader

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.

wedge
Image by @NorthmanTrader

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.

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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.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry β€” from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.