Bitcoin Sell Signals Flash Red: Imminent Crash or Historic Reversal Ahead?

Bitcoin's technical indicators scream caution—but veteran traders know markets love proving consensus wrong.

The Bearish Case Strengthens

Sell signals continue flashing across multiple timeframes, creating the perfect storm for nervous investors. Technical analysts point to weakening momentum and key support levels being tested—classic precursors to deeper corrections.

Bullish Divergences Emerge

Meanwhile, contrarians spot hidden strength. Institutional accumulation continues quietly, and on-chain metrics suggest long-term holders aren't budging. Sometimes the darkest technical charts precede the most violent rallies—Wall Street's finest have been wrong about crypto more times than they'd care to admit.

The Million-Satoshi Question

Will Bitcoin defy the indicators and reverse course? History shows these moments often separate tourists from true believers. When everyone reads the same tea leaves, the market tends to do the exact opposite—because nothing moves markets like proving conventional wisdom wrong.

Either way, someone's about to look very smart or very foolish. In crypto, it's usually the people who think they can predict the future using yesterday's patterns.

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“Off the charts,” “sold out,” and “growing exponentially” were all used by CEO Jensen Huang to describe Nvidia’s performance. “We’ve entered the virtuous cycle of AI,” explained the CEO, referencing how compute demand just keeps accelerating and compounding.

However, another type of cyclical activity is worrying investors, namely the circular financing in which billions of dollars in AI funding are exchanging hands between a handful of players. This has sparked fears among some that we are on the precipice of an AI bubble.

These concerns have no doubt been pressuring NVDA’s share price, which has sunk by 4% following its stellar earnings report last week.

One top investor known by the pseudonym JR Research argues that the market is not fully appreciating Nvidia’s future potential.

“Put aside AI bubble fears right now, as Nvidia’s bull case is far from imploding, allowing long-term buyers to capitalize on the irrational fear-driven selloff,” explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.

While JR acknowledges that these worries have some merit, the investor also points out that Nvidia expects AI infrastructure spending to reach $3 and $4 trillion by 2030. This creates a huge runway of opportunity for Nvidia, adds JR.

Moreover, the investor also cites Huang’s assertions that Nvidia’s portion of the data center ecosystem increases with every successive generation of technology. At the end of the day, JR reminds investors, Nvidia possesses the best performance per watt, making it the most efficient architecture around.

“I believe any calls into Nvidia’s purported demise amidst this mega AI build cadence aren’t just premature, but also not grounded in reality,” adds JR.

At the end of the day, the investor posits that fears of underinvesting and “losing that edge” are greater than the risks of an AI overbuild. In fact, big tech has committed to more than $600 billion in AI capex during CY2026, notes JR, while Nvidia’s backlog for Blackwell and the forthcoming Vera Rubin is $500 billion.

JR also points out that this may even be understated, as the AI spend has shown a tendency to undergo “sharp upgrades” over the past few years.

“I find it incredulous that the market doesn’t seem to have the same level of conviction in Nvidia’s posturings,” emphasizes JR, who rates NVDA a Buy. (To watch JR Research’s track record, click here)

That’s right where Wall Street finds itself as well. With 39 Buys, 1 Hold, and 1 Sell, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $257.33 implies an upside north of 40%. (See)

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