The TD Sequential Signals a Buy for Bitcoin

The TD Sequential, which perfectly timed Bitcoin’s top on January 21, is now flashing a buy signal on the daily chart.

After BTC swept liquidity below $95K, it’s headed for liquidity above $98K as whales buy at $97K.

Analysis of Bitcoin [BTC]

The TD Sequential indicator recently signaled a market top on January 21, 2025, at $103,000. Following this peak, Bitcoin’s price experienced a significant decline, reinforcing the TD Sequential’s predictive reliability.

As per the latest update, TD Sequential issued a buy signal on the daily timeframe, with Bitcoin’s price around $96,214. This suggests the potential for a market bottom, indicating an opportune moment for investors to consider entering the market.

The presence of a buy signal after a decline indicates that selling pressure may be exhausting, and a reversal could be imminent. However, if this buy signal does not lead to sustained buying pressure, BTC could test lower support levels around the recent lows of $94,400.

Such a drop would align with TD Sequential’s pattern of identifying pivotal points; however, it could lead to further declines instead of a rally.

Thus, while the current buy signal presents a potentially bullish scenario for Bitcoin, investors should remain cautious. They should consider both the possibility of a rebound towards higher levels, such as $100,000, or a continued downtrend if the signal fails to manifest into tangible buying momentum.

Dormant Whale Buys as BTC Targets Liquidity Above

A dormant whale wallet “bc1qv…” withdrew 350 BTC, valued at $33.97 million, from FalconX at $97,053 per BTC. This substantial purchase by a major player could indicate potential upward momentum.

However, if market sentiment does not align with the whale’s buying strategy, it could push prices down if others decide to cash out, fearing a top.

After sweeping liquidity below $95K, BTC appears poised to test higher levels, particularly around $98K. This move supports the potential for a continuation if BTC can maintain support above these critical liquidity thresholds.

Typically, overcoming such zones can catalyze further buying interest, pushing prices upwards. Conversely, if BTC fails to breach the $98K liquidity zone, it may indicate insufficient buying pressure, possibly leading to another retracement.

Finally, according to analyst Benjamin Cowen on X, the Total On-Chain Risk indicator suggests that Bitcoin’s peak may not have been reached yet. The metric currently shows levels that are atypical of a market top, implying the potential for a further rally.

Conversely, if the risk indicator begins showing values associated with previous market tops, it could signal that the current rally might be nearing its end. This scenario would require close monitoring of any shifts in on-chain activity that could precede a price correction.

Read Bitcoin’s [BTC] Price Prediction 2025–2026.