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3 indicators predicting BTC price falling to $24K-27K in 2022

Feb 15, 2022

Bitcoin bull trap????

Bitcoin (BTC) might fall below $30,000 in the coming months, according to the analyst Ari Rudd with accurate technical indicators. 

Rudd presented 3 long-term technical setups. explaining why Bitcoin's ongoing price recovery — from below $33,000 on Jan. 24 to around $42,000 today

Rudd's Logarithmic Fractal Growth (LFG) is a Bitcoin price prediction model that depends on BTC's logarithmic scales on both axes. The analyst applied the long-term Fibonacci chart on a monthly Bitcoin to US Dollar chart.

1. Bitcoin LFG model

The LFG levels were distribution areas for traders during the previous bearish cycles.

BTC/USD monthly chart featuring the Logarithmic Forex (LFG) Model. Source: Ari Rudd, TradingView

These ribbons represent a range of moving averages (MAs) that help traders to identify key resistance and support areas with prices in relation to the MAs.  Each of Bitcoin's top-to-bottom trends earlier has exhausted near its maximum price limit.

2. Ribbon support

While the cryptocurrency is witnessing a market decline from its $69,000 high. The analyst believes that it might bounce back from roughly $33,000 and may be a bull trap because the price is due to retest the ribbon support on the quarterly chart.

TradingView offers the price of Bitcoin in USD over time.

Another moving average ribbon chart shows changing trends on a weekly basis. Adding "strong" to the word resistance creates a stronger word. -Bitcoin’s weekly relative strength index (RSI).

Weekly Ribbon Resistance, RSI

RSI gives traders information about how the price is moving. RSI is an indicator that signals a downward trend.

BTC/USD is currently on a weekly chart, featuring a resistance point and an overbought reading.

There is an interim bullish outlook for Bitcoin from the indicators.

A bullish takeaway, meanwhile

Bitcoin balance on exchanges. Source: Glassnode

There is risk involved in investing, but one must conduct their own research before making any investment.