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 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.

1. Bitcoin LFG model

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."

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.

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).

3. Weekly ribbon resistance, 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.

A bullish takeaway, meanwhile

Bitcoin balance on exchanges. Source: Glassnode

One must conduct their own research before making any investment, as it involves risk.