The founder and lead market strategist at NorthmanTrader, Sven Henrich, in a recent note have stated that there is still a possibility for the price of Bitcoin (BTC) to sink further.
Henrich claims that Bitcoin must attain new highs in February 2020. Unless the prominent cryptocurrency could result in a bearish reversal last seen during early 2018. The market analyst has forecasted that the flagship cryptocurrency could fall back to $6,400 in 2022.
Bitcoin Could Drop Down to $6,400 in 2022
Sven Henrich perceives that the current market achievement of Bitcoin is notably 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 a similar path from the highs of 2017, the cryptocurrency could target the next low.
Missing to hold the support, the convergence inclusion of key trend lines could result in Bitcoin dropping down to $64,00 in 2022. Notwithstanding the market analyst’s bullish views on the cryptocurrency for the long term, he still considers BTC is moving closer to a critical point in the current bull cycle.
Bitcoin Needs to Break Above the $45,000 Level
Henrich has forecasted that BTC is at 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 possible bearish divergence, notwithstanding BTC managing to attain new highs.
Henrich claimed that it is greatly crucial for the price of Bitcoin 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.
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