Bitcoin TD Sequential Flashes Buy Signal at $88K

The crypto market is witnessing a critical technical development as Bitcoin hovers near key support levels. After reaching a local peak close to $94,000, technical indicators are now suggesting a potential reversal point that could determine the asset's trajectory in the coming weeks.

According to Ali Charts on X, the TD Sequential indicator has generated a buy signal for Bitcoin, indicating that a local bottom may be forming. This follows the indicator's successful identification of a local top near $94,000, demonstrating its reliability in timing turning points.

After timing a local top near $94,000, the TD Sequential is now flashing a buy signal for Bitcoin $BTC, suggesting a local bottom may be forming.

The current price action reflects intense pressure as Bitcoin attempts to stabilize. Trading activity shows clear resistance at higher levels, with sellers defending the $92,000-$94,000 zone aggressively.

You might also like: Bitcoin Breakout Looms: $80K Crash or $100K Moon?

Ted Pillows tweeted on X that BTC attempted to reclaim the $92,000-$94,000 range but encountered significant selling pressure. The focus has now shifted to the $88,000-$88,500 support zone, which coincides with a CME gap that typically gets filled before any meaningful upward movement.

$BTC tried to reclaim the $92,000-$94,000 zone but faced intense selling. Now, the key support level for Bitcoin is around $88,000-$88,500. This zone also has a CME gap, which could likely get filled before any upside.

Pattern Formation Signals Bullish Setup

Technical analysis reveals an ascending triangle formation developing on the charts. Han Akamatsu noted on X that Bitcoin continues to face pressure from liquidity providers, but the emerging pattern typically favors upward movement.

Must read: Bitcoin's 2026 Mystery: Stuck Between Power and Panic

$BTC Seems to not getting a break any time soon from the liquidity providers. We're having an ascending triangle formation here which is generally bullish.

The 1-day Hull Moving Average (HMA) aligns perfectly with the support trendline, presenting an optimal entry point around $88,000-$89,000. This confluence of technical factors strengthens the case for accumulation at current levels.

Related: Bitcoin Liquidity Crisis Emerges as Year-End Trading Stalls

However, traders should remain aware of alternative scenarios. A breakdown of the ascending triangle could push prices toward $82,000, though this outcome carries approximately 38% probability. The pattern structure inherently favors continuation of the uptrend.

Critical Levels Define Near-Term Outlook

The $88,000-$88,500 zone has emerged as the line in the sand for Bitcoin bulls. This region combines multiple technical factors including the CME gap, the HMA support, and the ascending triangle's lower boundary. Holding this area would reinforce bullish sentiment and potentially trigger accumulation.

Check out: Schiff Claims Saylor's Bitcoin Strategy Destroyed 47.5% Value

The TD Sequential buy signal adds weight to the technical case for a reversal. This indicator has proven effective at identifying exhaustion points in both directions, making its current reading particularly noteworthy for traders evaluating entry positions.

Resistance remains firm between $92,000 and $94,000, where sellers have consistently defended higher prices. Breaking through this range would require substantial buying volume and could open the path toward previous highs. Until then, the focus stays on whether support at $88,000 holds or breaks.

The coming sessions will prove decisive as Bitcoin tests these critical levels amid ongoing market volatility.

3 Key Takeaways:

1. TD Sequential buy signal suggests Bitcoin local bottom may be forming near current price levels
2. Critical support zone at $88,000-$88,500 coincides with CME gap and ascending triangle pattern
3. Bullish triangle formation favors uptrend with 62% probability versus 38% chance of $82K breakdown