Is It Time to Buy Bitcoin? Analysts Say History May Be Repeating

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Bitcoin has bounced back sharply from its recent drop to $58,000, climbing more than 4.6% to trade around $61,250. Meanwhile, well known chart analyst Ali Martinez says several key indicators that previously signaled massive rallies are flashing once again, with both whales and retail investors increasing their buying.

He suggested that the market has made its bottom, now it’s time to rally hard.

Bitcoin Near the 200-Week SMA, Has Been a Buying Zone

According to crypto analyst Ali Martinez, Bitcoin has only traded below its 200-week Simple Moving Average (SMA) a few times in its history, and each time it marked a major buying opportunity rather than the start of a long-term decline. 

Previous market cycles show a similar pattern. After touching this level in 2015, Bitcoin surged more than 8,500%. It later gained 267% after the 2018 market bottom, climbed about 1,125% following the 2020 COVID crash, and rallied nearly 680% after briefly falling below the same level in 2022. 

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Today, the 200-week SMA is around $63,500, while Bitcoin is trading slightly below it. 

Based on past market cycles, Martinez believes this could be a good level for investors to gradually accumulate Bitcoin through a dollar-cost averaging (DCA) strategy instead of trying to time the exact bottom.

Whales and Retail Investors Are Buying Together

It is not just historical data pointing to a potential upside. Martinez also pointed out that Bitcoin’s latest Accumulation Heatmap shows buying activity has picked up across almost every type of investor over the past 30 days.

Retail investors holding less than 1 BTC have increased their purchases, while mid-sized holders with 10 to 100 BTC are also buying more. 

At the same time, large investors holding 1,000 to 100,000 BTC have stopped selling and have become net buyers, although at a slower pace.

According to Martinez, when both retail investors and whales buy at the same time, it has often signaled that Bitcoin is entering a strong long-term buying zone and that selling pressure is beginning to ease.

Market Bottom Is Here 

Adding further confidence to his outlook, Martinez also showed monthly charts for Bitcoin, Ethereum, XRP, and Solana, where the Tom DeMark (TD) Sequential indicator is flashing fresh buy signals.

Historically, simultaneous monthly buy signals across multiple major cryptocurrencies have appeared near major market bottoms.

Following the recent jump, all four major coins are now well above the market bottom price, which Ali Martinez highlighted.

Despite all, while Martinez acknowledges Bitcoin could still revisit $54,000, he sees these levels as additional accumulation opportunities rather than reasons to panic.

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