CMT-Certified Expert Sees Bitcoin Buy Signal: Should Investors Go All-In on BTC?

Bitcoin is nearing a critical point in its long-term chart, which continues to show bullish signals. CMT-certified analyst Tony Severino indicates that the monthly SuperTrend indicator for BTC/USD remains supportive, not yet signaling a sell despite recent market fluctuations that have led many to speculate whether a bearish trend is in play. Severino’s analysis reveals an intriguing development in the one-month timeframe, where no confirmed sell signal has emerged.

Key Takeaways

The monthly SuperTrend indicator for Bitcoin is still in buy mode, suggesting bullish momentum.
A confirmed sell signal has not occurred, indicating that the price may not yet be in a bearish phase.
Historical patterns show that bear markets often hold support before issuing sell signals, so patience may be required.
Severino warns that Bitcoin could potentially decline further, an outlook that puts the possible price range between $40,000 and $25,000.

Bitcoin Price Tightens Range

Monthly SuperTrend Remains Positive for Bitcoin

In a recent analysis on platform X, Severino highlighted the significance of the BTC/USD 1M chart, where he pointed out that the SuperTrend indicator remains firmly above the support level, maintaining its active buy signal. This monthly timeframe is essential because it cuts through short-term volatility and provides a clearer perspective on the overall market cycle.

The chart reveals Bitcoin trading at approximately $66,300, with the SuperTrend level positioned just above $66,400. As the indicator continues to show green on the monthly chart, it highlights that the broader trend remains bullish. Historically, a close below the SuperTrend line has confirmed a sell signal, which has not yet occurred in this case.

The chart visually represents how previous bear markets transitioned from green to red on the SuperTrend. Currently, that shift has not taken place, suggesting that Bitcoin's price is consolidating around the support from the SuperTrend.

Bitcoin buy signal

Bitcoin Price Chart. Source: @TonySeverinoCMT On X

Patience or Potential Decline Ahead?

Severino also pointed out a significant consideration: bear markets often linger at support for one to three months before developing into a sell signal. This indicates that merely holding support doesn’t eliminate bearish risks. While he recognized that these markets can stay above support before breaking down, he emphasized that the bottom might be near following such trends.

In February, Bitcoin ended the month 14.8% lower than its opening level but maintained its position above the SuperTrend. A definitive drop associated with a monthly close below the SuperTrend would greatly alter this positive perspective. Until such a breakdown occurs, the SuperTrend indicates that Bitcoin is still in a bullish phase.

In a separate analysis shared later, Severino discussed insights from the quarterly Ichimoku indicator. He suggested that historical data indicates Bitcoin could face further declines of 38% to 66% from its current levels, potentially seeing a bear market bottom between $40,000 and $25,000.

As of the latest report, he concluded with the comment, “Sell, says the SuperTrend.” At the moment, Bitcoin trades at $66,000, reflecting a 1.6% decrease in the past 24 hours. While the monthly structure has not been fully broken, the warnings suggest that caution is warranted as risks may still linger in the cryptocurrency market.

Bitcoin price chart from Tradingview.com BTC price creates support at $66,000 | Source: BTCUSD on Tradingview.com