Feb 15, 2022
Bitcoin (BTC) might fall below $30,000 in the coming months, according to the analyst Ari Rudd with accurate technical indicators.
Rudd presented at least three 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 LFG model on a monthly BTC/USD chart.
The LFG levels had posed as distribution zones for traders during the previous bearish cycles.
BTC/USD monthly chart featuring the 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 so-called "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.
BTC/USD quarterly price chart featuring moving average ribbons. Source: TradingView
-Another moving average ribbon indicator, but on weekly timeframes. -The “strong resistance,” as Rudd highlighted. -Bitcoin’s weekly relative strength index (RSI).
RSI gives traders cues about bullish and bearish price momentum. Rudd noted that a downward sloping RSI trendline.
BTC/USD weekly price chart featuring ribbon resistance and RSI. Source: TradingView
There are several Bitcoin on-chain indicators providing an interim bullish outlook.
Bitcoin balance on exchanges. Source: Glassnode
One must conduct their own research before making any investment, as it involves risk.