Bitcoin buy alert: This signal says BTC is ripe for rebound

As the battle between bulls and bears in the cryptocurrency market takes a slight turn towards the former, Bitcoin (BTC) has flashed a buy signal through the TD Sequential indicator that suggests a possible rebound in the next few days.

Indeed, popular crypto expert Ali Martinez has noted that Bitcoin was a ‘buy,’ according to the TD Sequential indicator, which typically means a trend exhaustion and potential reversal are in order, per the analysis that the professional crypto trader shared in an X post on August 22.

Specifically, the analyst’s daily candlestick chart demonstrates that the TD Sequential indicator has just triggered a ‘buy’ signal after the recent pullback. This means that the downtrend may be exhausted, and a reversal (or at least a bounce) could be coming for the maiden crypto asset.

Bitcoin gains momentum

Meanwhile, the support zone lies at around $112,200 – $112,500 (recent lows), and BTC holding above it will strengthen the bullish reversal case. On the other hand, it will need to successfully pass the first resistance zone at $115,300 – $116,000 (recent breakdown area) before it can continue further above it.

The next important test areas include $118,400 (previous bounce area), and then the bigger target at $121,000 – $122,000 if the momentum continues, which could then send it $124,000. However, losing the $122,200 level would invalidate the buy setup.

Meanwhile, Bitcoin has already surpassed the first resistance zone, and is currently changing hands at the price of $116,705, recording an increase of 3.54% in the last 24 hours, as it moves to reverse the loss of 0.62% from across the previous seven days and the 1.13% decline from its monthly chart.

Earlier, Bitcoin was briefly in danger of hitting the low of $70,000 as its final major support zone before attempting a recovery, especially as it dropped below $112,000, but it soon managed to get back above it, forsaking the support at $91,400 and $70,000.