Bitcoin's Sell-Off May End as Key Indicators Signal Rebound

Bitcoin’s (BTC) recent sell-off may be nearing its end, with key technical indicators signaling a potential rebound after recent selling pressure. 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. 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.

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. 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's recent sell-off may be approaching its conclusion, as key technical indicators suggest a potential rebound following the recent selling pressure. The cryptocurrency has been experiencing a period of uncertainty, with multiple failed attempts to break above the $111,000 to $112,000 resistance zone. This repeated failure has led to a sequence of lower highs on the 4-hour timeframe, indicating that bullish momentum may be waning. The current price movement resembles a classic double top structure, a technical formation that often signals a shift from bullish control to bearish dominance. This setup could be an early indicator of a more significant market reversal in the coming days. The weakening follow-through on each upward attempt has led to a simultaneous weakening of support around $105,000. If this projected zigzag path plays out, Bitcoin’s price could break lower in the coming days and head toward a support area located between $101,000 and $102,000. This zone comes into focus because it acted as a strong support level between May 14 and May 19. Bitcoin eventually found footing around this level to stage a rebound that ultimately pushed it to the all-time high of $111,900 reached on May 22.

Although the bull market narrative is still dominant in the long term, the current price action has shifted the short-term tone of the market to bearish. This analysis addresses that potential, and Bitcoin could revisit the $101,000 to $102,000 before another leg up. At the time of writing, Bitcoin is trading at $105,272, down by 2.5% in the past 24 hours. The $106,800 support level has already given way, and the focus is now on holding above $105,000. If Bitcoin fails to hold above $105,000 in the coming trading sessions, it could lead to a cascading downturn towards $101,000 during the weekend. The recent rebound from $67,500 to $68,200 within four hours on May 31, 2025, suggests strong support at the lower level, making it a key area for setting stop-loss. This aligns with the idea that consolidation near strong demand often leads to upside. The current price movement is beginning to resemble a classic double top structure, which is a technical formation that often signals a shift from bullish control to bearish dominance. Given the weakening follow-through on each upward attempt, this setup could be the early signal of a more significant market reversal in the days ahead.