Bitcoin bull trap? 3 indicators that predict BTC price falling to $24K-27K this year

2 years ago

Bitcoin (BTC) looks acceptable to autumn beneath $30,000 successful the coming months, per a confluence of historically close method indicators brought distant by fashionable expert Ari Rudd.

The autarkic marketplace expert published a thread connected Feb. 14, explaining wherefore Bitcoin's ongoing terms betterment — from beneath $33,000 connected Jan. 24 to astir $42,000 today — mightiness not person beardown legs.

In doing so, Rudd presented astatine slightest 3 semipermanent method setups with highly bearish outlooks.

They are listed arsenic follows:

1. Bitcoin LFG model

Rudd's Logarithmic Fractal Growth (LFG) is simply a Bitcoin terms prediction exemplary that relies connected BTC's fractals that dwell of "logarithmic scales connected some axes." It past projects wherever Bitcoin whitethorn spell adjacent based connected its humanities terms actions.

The expert applied the LFG exemplary connected a monthly BTC/USD chart.

As shown successful the illustration below, the LFG levels had posed arsenic accumulation/distribution zones for traders during the erstwhile bearish cycles. So, Rudd noted that Bitcoin inactive had to autumn to the lowermost level range, a alleged buy-area that had coincided with bottoms during the 2018 and 2020 terms crashes.

"We are a fewer months distant from reaching the accumulation phase," Rudd stressed, adding that:

"Best imaginable script for bargain opportunities volition beryllium 24-27K levels."

2. Ribbon support

Like the LFG model, moving mean ribbons person coincided accurately with the extremity of Bitcoin's bearish cycles, including 2018 and 2020, connected a quarterly timeframe.

In detail, these ribbons correspond a range of moving averages (MAs) that enables traders to place cardinal absorption and enactment areas by looking astatine prices successful narration to the MAs. Each of Bitcoin's top-to-bottom trends earlier has exhausted adjacent its alleged "ribbon support."

With the cryptocurrency undergoing different terms correction from its $69,000-top, the expert suggests that its beardown bounce from adjacent $33,000 could crook retired to beryllium a bull trap due to the fact that the terms is "due to retest the Ribbon enactment connected [the] quarterly chart."

As a result, the moving averages ribbon indicator risks sending Bitcoin to $25,000 oregon below.

3. Weekly ribbon resistance, RSI

Another moving mean ribbon indicator, but connected play timeframes, has been instrumental successful capping Bitcoin's ongoing terms rebound.

The "strong resistance," arsenic Rudd hinted, provided further bearish sentiment if coupled with Bitcoin's play relative spot index (RSI).

RSI gives traders cues astir bullish and bearish terms momentum. Rudd noted that the buying momentum weakened astir a downward sloping RSI trendline, hinting astatine imaginable selloffs up for the BTC/USD pair.

A bullish takeaway, meanwhile

In opposition to the bearish method indicators mentioned above, determination are respective Bitcoin on-chain indicators providing an interim bullish outlook.

As Cointelegraph covered earlier, Bitcoin addresses that clasp astatine slightest 1,000 BTC witnessed person added much tokens to their balances during the caller upside retracement, signaling that the richest crypto investors person been backing the BTC's rebound move.

Additionally, the magnitude of Bitcoin held by exchanges dropped Sunday to its lowest levels successful implicit 3 years, data from Glassnode shows, successful a continuing bullish downtrend that remains intact since the March 2020 bottom.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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