Bitcoin bull trap? 3 indicators that predict BTC price falling to $24K-27K this year
Bitcoin (BTC) looks ready to fall below $30,000 in the coming months, per a confluence of historically accurate technical indicators brought forth by popular analyst Ari Rudd.
The independent market analyst published a thread on Feb. 14, explaining why Bitcoin's ongoing price recovery — from below $33,000 on Jan. 24 to around $42,000 today — might not have strong legs.
In doing so, Rudd presented at least three long-term technical setups with extremely bearish outlooks.
They are listed as follows:
Rudd's Logarithmic Fractal Growth (LFG) is a Bitcoin price prediction model that relies on BTC's fractals that consist of "logarithmic scales on both axes." It then projects where Bitcoin may go next based on its historical price actions.
The analyst applied the LFG model on a monthly BTC/USD chart.
As shown in the chart below, the LFG levels had posed as accumulation/distribution zones for traders during the previous bearish cycles. So, Rudd noted that Bitcoin still had to fall to the lowermost level range, a so-called buy-area that had coincided with bottoms during the 2018 and 2020 price crashes.
"We are a few months away from reaching the accumulation phase," Rudd stressed, adding that:
Like the LFG model, moving average ribbons have coincided accurately with the end of Bitcoin's bearish cycles, including 2018 and 2020, on a quarterly timeframe.
In detail, these ribbons represent a range of moving averages (MAs) that enables traders to identify key resistance and support areas by looking at prices in relation to the MAs. Each of Bitcoin's top-to-bottom trends earlier has exhausted near its so-called "ribbon support."
With the cryptocurrency undergoing another price correction from its $69,000-top, the analyst suggests that its
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