Bitcoin’s (BTC) ongoing sell-off may be nearing its end, with key technical indicators signaling a potential rebound after recent selling pressure.
Notably, prominent trading expert Ali Martinez highlighted that the TD Sequential indicator is flashing a major buy signal on Bitcoin’s 12-hour chart. This setup suggests a possible move above $105,000, he said in an X post on May 31.
The TD Sequential is a time-based indicator that identifies trend reversals or price exhaustion. When the system counts to “9,” it often signals that the current trend is weakening and that a reversal or correction may be imminent.
Notably, Bitcoin has printed a bullish “9” candle, hinting that the recent downtrend could end and a short-term rally might be underway. If the signal plays out, Martinez believes Bitcoin could retest $105,000, a level that recently flipped from support to resistance.
Bitcoin record high price target
Supporting the bullish outlook, analyst Ted Pillow pointed out that the global M2 money supply, offset by 90 days, reliably forecasts Bitcoin price moves. His model predicted the May dip and now projects a sharp upward move, potentially pushing Bitcoin above $125,000 by late summer.
Will Bitcoin rally pause?
While the long-term outlook remains bullish, on-chain data suggests a possible pause before further gains. According to analytics platform CryptoQuant, several demand indicators are nearing peak levels, resembling past market slowdowns.
CryptoQuant indicated that Bitcoin demand has grown by approximately 229,000 BTC over the past 30 days, approaching the December 2024 peak of 279,000 BTC, an area that previously marked a local top.
Additionally, Bitcoin balances held by whales have risen 2.8% in the past month. Historically, such accumulation often precedes a cooling period in large-holder activity.
These signs point to the possibility of a consolidation phase before the next significant move.
Bitcoin price analysis
As of press time, Bitcoin was trading at $104,680, down 0.75% in the last 24 hours and over 4% in the past seven days.
Nevertheless, Bitcoin remains above key support levels, trading above its 50-day ($98,083) and 200-day ($86,943) moving averages (SMA), indicative of continued bullish momentum. The 14-day relative strength index (RSI) stands at 50.28, suggesting neutral sentiment.
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