Bitcoin continues to consolidate within the $78,000 area, after its net positive performance in April. Having shown major signs of recovery, the leading cryptocurrency is now gaining momentum for the next major price swing. In the middle of the wait, a pivotal negative trading signal appeared.
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TD Sequential highlights significant support for Bitcoin
in Share X On May 2, veteran market analyst Ali Martinez hypothesized that Bitcoin may soon endure another wave of price correction, following the latest TD Sequence data. The premier cryptocurrency was a major victim of the market winter, hitting a session low of $60,000 and currently trading 37.85% below its all-time high of $126,100.
April brought a lot of bullish relief amid this bear market, with prices up 14%. However, the TD Sequential, a trading indicator largely used to identify potential trend reversals and exhaustion, supports the return of bearish sentiment.
A new sell signal has just appeared for Bitcoin $ Bitcoin.
The Tom DeMark (TD) Sequential indicator is indicating trend exhaustion on the 3-day chart, marking the first major bearish pivot of the year.
This setup expects a correction of 1 to 4 candles on the 3-day time frame. pic.twitter.com/NNhYWBvXDa
– Ali Charts (@alicharts) May 2, 2026
According to Martinez, the TD series is flashing a trend exhaustion signal on the 3-day BTCUSDT chart. Interestingly, this event marks the first bearish shift in the index in 2026. The last signal came from TD Sequential in February – a buying trigger that has proven successful, leading to 32% gains between $60,000 to around $80,000.
This latest sell setup expects a correction of 1 to 4 candles on the 3-day time frame, i.e. a short-term pullback that could unfold over approximately three to 12 days before the broader trend resumes or consolidates. In this regard, Martinez highlighted $67,500 as an immediate downside target if this negative play unfolds.
However, the analyst warns that price momentum may fail to stabilize around this level. In this case, a deeper correction may occur, exposing investors to lower levels between $40,000 and $50,000. Martinez also emphasizes that Bitcoin’s overall structure remains bullish, and long-term investors should monitor the price action at $67,500 to confirm a trend in either direction.
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Bitcoin market overview
At press time, Bitcoin is trading at $78,657, following an immediate rebound after hitting $79,000. The leading cryptocurrency registered a slight gain of 0.68% on the daily chart. However, daily trading volume fell by a staggering 56%, indicating little market participation behind its recent gains.
On the monthly chart, Bitcoin rose 17.53% due to its rebound in April. However, the leading cryptocurrency faces major hurdles ahead, such as $80,000, which must be broken to consolidate the bullish recovery case. With a market capitalization of $1.57 trillion, Bitcoin dominates the market with a 60.4% share and is the 11th largest asset in the world.
Featured image from Vecteezy, chart from Tradingview
