Bitcoin has been on a bumpy path over the last few months, jumping between $11,000 and $9,000 rather frequently.
However, last week we pointed out that a bearish fractal had appeared and that Bitcoin is likely heading for a drop down from its current price.
Today, the charts are verifying that with a strong downward trend emerging, looking like it will drive Bitcoin down to the $8,000 region.
Dive, Dive, Dive
The 1-day MA1,000 range is still pointing convincingly towards a significant drop, and now we’ve got more indicators hinting that a drop is incoming.
Get ready to dive down deep into the depths of $8,000 as four trade channels have linked up with a downward trend, indicating that we’ve got a way to fall yet.
This downward trend has been created by lower highs over the past month, with the first high of the trend coming in at $10,000 on June 10.
Then on June 23, we saw a new lower high of $9,800, followed by another lower high on July 7 at the price of $9,300.
This indicates that there is a steep dip coming in the next few days and it will bring us to a new lower high of around $9,000.
However, in order to rebuild back up to that lower high, Bitcoin will have to sink a lot lower, and we’re currently plotting charts that indicate the $8,000 range.
Sell Now or Forever HODL Your Bitcoin
Just kidding, you won’t need to hodl forever. But if you miss out on selling before Bitcoin drops below the $9,200 level, then you’re going to have to wait a while, if you want these good prices, of course.
Bitcoin will bounce back once it breaks out of this downward trend, and it will do rapidly.
In fact, the logarithmic best buy zone for Bitcoin is between $8,500 and $7,000, so falling down to these levels could be on the cards.
If we do hit these levels, it’s well worth stocking up as much as you can, simply because every new push upwards adjusts the logarithmic buy price to a new higher amount.
Our current target for Bitcoin if it remains following this trend is somewhere between $8,600 and $8,000, a target we’re expecting to see achieved in the short-term.
Can Bitcoin Break Out of the Trend?
As much as we would love to see Bitcoin break out of the trend, it’s actually better for Bitcoin to consolidate down to this range than to just climb instantly to $20,000.
However, that doesn’t mean that Bitcoin can’t break out of this trend before it completes at the logarithmic best buy zone.
All it takes is a single whale to place a big buy order, a government to announce some positive Bitcoin news or a project to drop an incredible new application for Bitcoin.
We’ve seen it time, time and time again, so we can’t rule it out for the time being.
But, the most likely scenario, and the more natural course for Bitcoin, is that Bitcoin will slide down to that $8,000 range.
Sorry bulls. We’re in full bear mode!