As Bitcoin continues to exhibit volatility in early January 2025, the cryptocurrency market remains on edge, with traders focusing on a crucial price level. A buy signal, highlighted by the TD Sequential indicator on Bitcoin’s 4-hour chart, presents an intriguing possibility for a price rebound. However, the effectiveness of this signal hinges entirely on Bitcoin’s ability to hold $93,500 as support. Without this, the outlook could quickly shift to further downside movement, potentially testing lower levels.
According to Crypto Analyst Ali Martinez,The TD Sequential, a popular technical analysis tool, is showing a buy signal on the 4-hour chart for Bitcoin. This indicator, which aims to predict trend exhaustion and reversal points, is suggesting that Bitcoin may be primed for a bounce. The buy signal typically emerges when a series of red candles (downward movements) are followed by a green candle, indicating that downward momentum could be coming to an end.
According to recent chart patterns, the indicator has positioned Bitcoin to potentially reverse its recent losses. Traders often look to the TD Sequential’s signals as a signal to enter long positions, as it may be a sign of an imminent price rally. However, for this prediction to materialize, certain price levels must be maintained, especially in the face of the ongoing volatility.
$93,500 Support Level, Bitcoin’s Position, and What’s Next
The success of Bitcoin’s potential rebound largely depends on whether it can hold $93,500 as support. This level has been pivotal in recent price action, as it serves as a crucial psychological and technical barrier. Should Bitcoin manage to stabilize above this level, it could signal the start of a short-term rally, with resistance levels in the $96,000 to $98,000 range as the next key targets. The buy signal from the TD Sequential could be validated if Bitcoin holds this support and continues to push higher.
However, if Bitcoin fails to maintain support at $93,500, the sell-off could intensify, with the possibility of retesting lower levels below $90,000. Given the current volatility and unpredictability of the market, this level becomes even more critical. A breach of this support could lead to a reversion back to bearish momentum, undermining the recent buy signal and creating further uncertainty for traders.
Bitcoin is currently trading at approximately $95,300, reflecting a slight downturn from its recent highs. The chart indicates that Bitcoin has been caught in a range between $93,500 and $98,000, with its ability to break through either side determining its next major move. As the TD Sequential buy signal suggests, there is a chance for a bounce, but Bitcoin’s price will need to confirm this by staying above the critical $93,500 support.
For now, traders are closely monitoring Bitcoin’s price action, awaiting confirmation that the $93,500 level holds. If Bitcoin fails to maintain this support, further downside risk may become more likely. However, if this level is upheld, the outlook could turn more optimistic, with the possibility of a price rebound toward the $96,000-$98,000 range.
The coming hours and days will be critical for Bitcoin as it tests this key support zone. With a volatile market and several factors at play, including macroeconomic conditions and investor sentiment, Bitcoin’s path remains uncertain. Traders will continue to watch closely to see if the TD Sequential buy signal materializes into a true price rebound or if the support at $93,500 fails to hold, resulting in more downward pressure for Bitcoin.
