As market analyst Sven Henrich demonstrates, the timeline of tweets has almost perfectly matched the rise and fall of stocks during the crash. If you kept your nerve, looking past the false optimism then noticing the extreme bearish sentiment mid-March, you would have matched S&P500 returns for the past two years in only three weeks. In his recent note, Sven Henrich, the founder and lead market strategist at NorthmanTrader, writes that it is crucial for Bitcoin to reach “sustained new highs” in February. Otherwise, the leading cryptocurrency could start another bearish reversal similar to the one that took place in early 2018. In such a case, the trader would target $6,400 in 2022. Sven Christian Henrich, age 53, Glendale, AZ 85306 View Full Report Known Locations: Glendale AZ, 85306, Phoenix AZ 85021, Phoenix AZ 85023. The latest tweets from @NorthmanTrader. Gerald Pontificus. Best advice since the 2008/2009 market correction. DYODD this is just entertainment.
Alex Dovbnya
Northmantrader Twitter
In his recent note, Sven Henrich, the founder and lead market strategist at NorthmanTrader, writes that it is crucial for Bitcoin to reach “sustained new highs” in February.
Otherwise, the leading cryptocurrency could start another bearish reversal similar to the one that took place in early 2018. In such a case, the trader would target $6,400 in 2022.
And be clear, if the structural takes on a similar path the 2017 highs could well be the next target lower. Failing holding that support the confluence interjection of key trend lines may ultimately be yield a target of around $6400 in 2022.
For now, however, Bitcoin’s bull case remains intact, but Henrich is convinced that the top coin is approaching a critical point in this new cycle.
$45,000 is do or die for Bitcoin
After soaring to an all-time high of $41,950 on Jan. 8, the cryptocurrency hit a major roadblock and corrected to as low as $28,845 on Jan. 22. On Feb. 6, Bitcoin recovered to $41,000 but then started to give up its gains, dipping to $37,351 the following day.
Henrich asserts that Bitcoin has to convincingly break through $45,220 to get a footing above the 3.618 Fibonacci level.
After finding strong support at the 2.618 Fibonacci level during the two latest corrections, the cryptocurrency could eventually lose it and face a much steeper pullback if it fails to reach a new all-time high in the near future.
2018 similarities
According to Henrich, Bitcoin’s current performance is strikingly similar to early 2018 when the top coin was in the early innings of the brutal bear market.
As the chartist points out, the crypto king is at risk of forming a monthly rejection candle and a lower high in the following month. Such a setup was effectively a death knell for Bitcoin’s previous bull run.
Even if Bitcoin does manage to soar to new highs, Henrich writes that traders have to keep a close eye on the bearish divergence.
Sven Henrich, the founder and lead market strategist at NorthmanTrader, in a recent note has said that there is still a possibility for the price of Bitcoin (BTC) to further drop down. According to him, it is crucial for Bitcoin (BTC) to reach new highs in February, 2020. Otherwise, the leading cryptocurrency could result in a bearish reversal last seen during early 2018. The market analyst has predicted that the flagship cryptocurrency could fall back to $6,400 in 2022.
Bitcoin Could Drop Down to $6,400 in 2022
Sven Henrich sees that the current market performance of Bitcoin (BTC) is extremely similar to that of early 2018 when the cryptocurrency was gearing up for its historic bear market. He pointed out that if the structure takes the similar path from the highs of 2017, the cryptocurrency could target the next low.
Failing to hold the support, the confluence interjection of key trend lines could result in Bitcoin (BTC) dropping down to $64,00 in 2022. Despite the market analyst bullish views on the cryptocurrency for the long term, he still believes Bitcoin (BTC) is moving closer to a critical point in the current bull cycle.
Bitcoin Needs to Break Above the $45,000 Level
Sven At Nrothram Trader Twitter
Henrich has predicted that Bitcoin (BTC) is at a risk of forming a monthly rejection candle and a lower high in the following month. That pattern itself was the deal breaker for the cryptocurrency’s previous bull run. In case the pattern again repeats itself, traders have to prepare for a potential bearish divergence, despite Bitcoin managing to attain new highs.
Sven Henrich Twitter
According to him, it is extremely crucial for the price of Bitcoin (BTC) to break above the $45,000 level to rise above the 3.618 Fibonacci level. After finding strong support at the 2.618 Fibonacci level during the two latest corrections in January 2021, a third correction could result in a larger pullback. Hence, a new ATH could protect against a new bearish reversal, last seen in a similar pattern to 2018.