Technical analysis by gen1trade about Symbol BTC: Sell recommendation (10/5/2024)

We have a long-term uptrend channel that has been valid since 2017. This trend, which has formed on a logarithmic scale on the daily chart, continues to guide the Bitcoin price movements in the long term. As seen in the regions I marked on the yellow trend line on the chart, we observe that significant price movements are usually triggered in the periods when it remains above or below the line. In particular, we see a strong movement coming when the price has previously approached this yellow trend line and broken down or up. Similarly, when we look at the current price movement, I think that selling pressure will continue after a weekly close below the yellow trend line. In addition, the price is currently below the 200-day simple moving average. If Bitcoin's recent move tests the SMA200 level and fails to break this important resistance level, we can see voluminous and long red candles at or below the channel support level. Generally, when it remains below the SMA200, the market tends to exhibit more weakness. Therefore, if it remains below SMA200, I expect the downward movement to accelerate. The RSI indicator also supports the bearish expectation. Since the RSI remains below its moving average, we see that the momentum in the market is negative. Both the SMA200 working as resistance and the RSI giving a downward signal are technical factors that strengthen the downward trend in Bitcoin. On the geopolitical side, the Russia-Ukraine war and the tensions in the Middle East continue to suppress risk appetite in global markets. The negative impact of these developments on risky assets may also affect assets such as Bitcoin. In this context, I expect a pullback towards the $50,000 levels, which is the support of the channel alt in the first stage. The 50,000 level is an important point as both a long-term trend support and an important psychological support.