Bitcoin has been on a crazy ride over the past few months, and with high levels of volatility anything could happen in the coming weeks and days.
With that in mind, a potential bearish fractal is appearing on the charts, hinting that Bitcoin could be about to slide downwards.
If this is the case and the fractal plays out, it could be a great opportunity for Bitcoin casino players to bag some cheap Bitcoin.
Bitcoin looks set to take a bit of a step down to the $7k region
RSI Forming Familiar Bearish Triangle
If you cast your minds back to June 2019, Bitcoin peaked at around $13,000, which was amazing for all of the Bitcoin world.
But, this ultimately led to the RSI on the 1 day charts forming an unsightly bearish triangle, taking Bitcoin down to the doldrums of $9,000 in September.
It appears very much as if this triangle is once again back to haunt us, starting its formation in May and we could see it run its course by the end of July.
On top of this, the 1 day MA50 is also reversing downwards, this is the first time these two have converged since August 2019 – another big drop for Bitcoin.
Unless There is Good News, Bitcoin Will Head Down
Bitcoin is widely influenced by news from around the globe, with Xi Jinping’s speech in October 2019 causing Bitcoin to shake off its losses and rally against the trend.
Unless we see some major news such as Xi Jinping saying blockchain and Bitcoin is the future, or perhaps we see another positive development in the western world, then Bitcoin will likely drop.
This will take us down to the 1 day MA1,000 range, which is actually rather ideal.
According to Bitcoin’s logarithmic growth model, this range is the best buy zone for Bitcoin and encourages a lot of upward price movement.
This time around, the 1 day MA1,000 range sits at about $8,500 and goes as low as $7,000.
Should I Stock Up on Bitcoin?
If you’ve got a ton of Bitcoin winnings from hitting your favorite Bitcoin casino games, then you might want to consider cashing some out now to give yourself a nice cushion of profits.
If Bitcoin does drop down to the 1 day MA1,000 level, it could be a few months before we see Bitcoin back up at the upper end of $9,000.
On the other hand, if you’re looking to load up and fill your Bitcoin wallet and you can wait, we’re fully expecting the 1 day MA1,000 level to be achieved by September.
It will be the best chance to get cheap Bitcoin, as on the next bullish movement the logarithmic growth model will put the idea buy range a lot higher.
Fill Up and HODL On
There is a lot of volatility at the moment and we’ve seen that one announcement can skew the markets, so take this with a pinch of salt.
If all plays out and regulators/big players in the blockchain space hold off from dropping anything big in the next few weeks, we could see Bitcoin slide significantly.
It’s time to hodl on!
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