Bitcoin Buy Signal Confirmed? Analysts Highlight Key Reversal Zone In Play

Source Newsbtc

In an X post shared earlier today, crypto analyst Ali Martinez noted that Bitcoin (BTC) is flashing a buy signal. Another analyst, Titan Of Crypto, highlighted that BTC is currently trading in a reversal zone – suggesting that the leading cryptocurrency may soon experience a shift in price momentum.

Bitcoin Flashes Buy Signal Amid Market Pullback

Compared to the price action seen last year, Q1 2025 has been relatively sluggish for digital assets. On a year-to-date (YTD) basis, BTC is down nearly 30%, dropping from around $97,600 on January 1 to approximately $78,000 at the time of writing.

Following yesterday’s tariff-induced crypto market pullback –  which wiped over $140 billion from the total crypto market cap – BTC is now beginning to show early signs of strength. Martinez emphasized that Bitcoin is flashing a weekly TD Sequential buy signal.

ali

For the uninitiated, the weekly TD Sequential buy signal is a technical indicator that suggests a potential trend reversal or buying opportunity after a prolonged downtrend. It typically appears when a specific 9-count pattern completes, signalling that selling pressure may be exhausted and a price rebound could be near.

Meanwhile, fellow crypto analyst Titan Of Crypto pointed out that BTC is trading within a potential reversal zone. He noted that as long as BTC remains above the 38.2% Fibonacci retracement level, the broader uptrend would remain intact.

titan

Additionally, Titan highlighted that BTC’s Fair Value Gap (FVG) at $80,000 has now been filled – a development that further boosts the case for a potential trend reversal or significant price action at current levels.

To explain, an FVG is a price imbalance on a chart, often created by a strong move in one direction, where little to no trading occurred. It indicates a potential area where price may return to “fill the gap” before continuing its trend.

Recent BTC Price Drop Not Out Of The Ordinary

Another crypto analyst, Master Of Crypto, remarked that although the recent BTC price decline may have alarmed some investors, it’s well within the bounds of historical norms. The analyst pointed out that BTC is currently trading about 26.6% below its all-time high (ATH) of $109,500.

However, this decline is still less severe than previous market cycle drawdowns, such as 83% in 2018 and 73% in 2022. The analyst added that besides the price pullback, BTC’s weekly Relative Strength Index (RSI) has also been trending down for five weeks.

master

That said, technical indicators suggest that it may take more time before BTC sees a meaningful shift in price momentum. For instance, the top cryptocurrency recently flashed a death cross, a bearish pattern that could signal further short-term downside. At press time, BTC trades at $78,543, down 0.3% in the past 24 hours.

bitcoin
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
Analyst Flags XRP as Market’s ‘Best Risk/Reward’ Play as Token Tests Critical $1.60 SupportCrypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
Author  Mitrade
Feb 03, Tue
Crypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
placeholder
Ethereum Price Forecast: ETH faces heavy distribution as price slips below average cost basis of investorsEthereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
Author  FXStreet
Feb 05, Thu
Ethereum (ETH) extended its decline on Wednesday, dropping more than 5% over the past 24 hours toward the $2,100 level, which is below the $2,310 average cost basis or realized price of investors, according to CryptoQuant's data.
placeholder
Bitcoin Drops to $70,000. U.S. Government Refuses to Bail Out Market, End of Bull Market or Golden Pit? The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
Author  TradingKey
Feb 05, Thu
The U.S. government refuses to bail out Bitcoin, and with Fed rate cuts nowhere in sight, a continued downward trend to test for a bottom is likely after a brief rebound.During the mid-da
placeholder
Bitcoin Surrenders $65,000 as Analysts Warn of ‘Structural’ Market BreakBitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
Author  Mitrade
Feb 06, Fri
Bitcoin plunges 11% to break $65k as analysts term the crash "structural," citing a $1 trillion market wipeout and $2.09 billion in daily liquidations.
goTop
quote