Bitcoin is consolidating around $78,000 after net gains in April, building momentum for its next major move. Amid this pause, a prominent bearish trading signal has appeared.
TD Sequential Highlights Critical Bitcoin Support
Market analyst Ali Martinez noted on X (May 2) that recent TD Sequential readings suggest Bitcoin may face another corrective wave. After a market-cycle low near $60,000, BTC remains about 37.85% below its all-time high of $126,100. April delivered a roughly 14% net advance, but the TD Sequential—a tool used to spot trend exhaustion and reversals—has issued a sell indication.
According to Martinez, the TD Sequential shows trend exhaustion on the BTCUSDT 3-day chart, marking the first major bearish pivot of 2026. The prior TD signal in February was a buy that preceded roughly a 32% rise from about $60,000 to near $80,000.
This new sell setup anticipates a 1-to-4 candlestick correction on the 3-day timeframe, implying a short pullback lasting roughly three to 12 days before the market either resumes the larger trend or consolidates. Martinez identifies $67,500 as the immediate downside target if the correction plays out. He cautions that if momentum does not stabilize at that level, a deeper decline could follow, potentially exposing $40,000–$50,000. Still, he emphasizes Bitcoin’s macro structure remains bullish and urges long-term holders to watch price action around $67,500 for confirmation.
Bitcoin Market Overview
At the time of reporting, Bitcoin trades near $78,657 after a minor retrace from $79,000, showing a 0.68% gain on the daily chart. Daily trading volume has dropped about 56%, indicating limited participation behind the recent move. On the monthly timeframe, BTC is up roughly 17.53% thanks to April’s rebound. Critical resistance sits near $80,000, which must be cleared to reinforce a bullish recovery. With a market cap around $1.57 trillion, Bitcoin commands about 60.4% of crypto market dominance and ranks as the world’s 11th-largest asset.
Featured image from Vecteezy, chart from Tradingview.