Analyst Flags Bitcoin Support at $107K, Eyes Rebound on Buy Signal

Key Points:

• Bitcoin tests $107,500 support as TD Sequential flashes hourly buy signal.
• Double-top and falling volume hint at buyer fatigue and consolidation.
• Break above $110,718 may rally to $112,500; below $107,500 risks $102,000.

A closely followed crypto strategist says Bitcoin (BTC) has reached a critical support level that previously acted as a springboard for short-term rallies.

In a new post on social media platform X, analyst Ali Martinez highlights that BTC has hit the lower boundary of its current trading channel, around $107,500, an area where the top crypto asset has historically found support.

“#Bitcoin $BTC reached the lower boundary of its current channel, where it has previously found support, while the TD Sequential is flashing a buy signal on the hourly chart!”

Ali Martinez via X

At the time of writing, Bitcoin is trading at $108,172, slightly recovering from an earlier low after falling from the $110,700 zone.

BTC Chart Reveals Double Top and Fading Momentum

Technical analysis shows Bitcoin is moving through a consolidation-to-corrective phase after breaking its recent short-term uptrend. A clear double-top pattern formed near the $111,000–$111,980 range signals exhaustion from bulls after a sharp parabolic rise.

Lower highs and a drop toward the $107,516 demand zone followed, with a modest rebound emerging. Still, BTC remains below key resistance at $110,718, highlighting lingering caution among traders.

Candlestick and Volume Action Suggest Weakness

Recent candlestick patterns show long upper wicks and diminishing bullish momentum, suggesting buyer fatigue. While the $107,500 zone has provided a temporary bounce, the lack of strong bullish volume raises doubts about a sustained recovery.

Volume during the recent decline was steady rather than climactic, a sign that BTC may continue drifting sideways or slightly lower in the near term.

Key Scenarios to Watch

• Bullish: A break above $110,718 could open the door for a rally to $111,980 or possibly $112,500.
• Bearish: If BTC breaks below $107,500, expect further downside toward $104,184 and potentially $102,000.
• Neutral: Sideways action is likely if trading volume remains low in the $108,000–$109,000 range.