Technical analysis by felixfenix about Symbol BTC: Sell recommendation (7/3/2024)

Description:Bitcoin appears to be in a bear market, and several key indicators support this observation. Here’s an analysis of these indicators to explain the current bearish trend.1. Price Action:In a bear market, Bitcoin shows a pattern of declining highs and lows. This means that each peak and trough in the price is lower than the previous ones, indicating a downtrend. In the attached chart, you can see this pattern clearly, confirming that Bitcoin is trending downwards.2. Volume Analysis:Volume analysis helps us understand the strength behind price movements. In a bear market, significant price drops without a corresponding increase in trading volume suggest weak support from traders. The attached chart shows that during price declines, the volume does not significantly increase, indicating a lack of strong buying interest to support higher prices.3. Momentum Analysis:Momentum indicators are useful for assessing the strength and direction of a trend. In a bear market, these indicators typically remain below a central reference line and often show a negative slope, reflecting continued downward pressure. Our analysis of the chart indicates that the momentum remains negative, reinforcing the bearish trend.Conclusion:Based on price action, volume analysis, and momentum indicators, it is evident that Bitcoin is currently in a bear market. The observed patterns of lower highs and lower lows, coupled with weak volume support and negative momentum, all suggest that the bearish trend is likely to continue. Traders should exercise caution and consider these indicators when making investment decisions.As predicted, BTC has started its descend touching 58k. Next leg down should be $40,000BTC has closed critical 56,600 support and should head towards 48k where it may consolidate for a while