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Recently, it seems that the Bitcoin industry is taking two steps forwards and one step down. For example, on March 13, the price of Bitcoin hit an all-time high of $61,711.87, but instead of settling near $60,000, the commodity started to decline. In the last 24 hours, the price of BTC has dropped to the $53,000 mark, representing a 3% and 1% drop in the regular and weekly timeframes, respectively.
Previously, Sven Henrich, founder of Northman Trader, figured out a recent pattern in the Bitcoin industry and that a bullish run has been broken. According to the analyst:
“Following the bullish falling wedge breakout, Bitcoin needs new highs soon to maintain the trend or risks a trend break as negative divergences are becoming more pronounced.”
Henrich explained how Bitcoin had bounced off the wedge support line and returned to the damaged support line in the first week of March in the picture below.
He noted that there was a “pivot of control here” and predicted that a “decision” would soon take place.
Meanwhile, the crypto fear-and-greed index value was 66 as of March 23, indicating that traders might be being greedy, implying that the market is due for a correction. However, the prices stay in the green zone, suggesting that buyers are not yet succumbing to FUD, despite the fact that the digital asset’s price has dropped over the week.
Glassnode recently suggested that trading dynamics are “similar to the latter phases of a bull market” with Bitcoin’s stabilisation between $53.6k and $61.5k. Markets would finally hit a “euphoric peak” when whales increased their spending in Bitcoins to benefit. Surprisingly, wallet balances of more than 100 BTC have been “flat on average over the last three years,” notwithstanding the presence of “small-holder accumulation.”
According to the analysts, the asset’s price could decline further as a correction phase; nevertheless, Bitcoin has a high chance of entering this “later-stage bull market.”