Bitcoin is consolidating around $78,000 after net gains in April, and a widely watched bearish indicator has appeared that could signal a short correction. Market analyst Ali Martinez noted on X (May 2) that TD Sequential readings point to possible trend exhaustion.
What the TD Sequential shows
Martinez flagged a sell setup on the BTCUSDT 3-day chart. The TD Sequential—used by traders to identify potential trend exhaustion and reversals—has produced the first significant bearish pivot of the year on that timeframe. The last notable TD signal in February was a buy that preceded roughly a 32% rally from about $60,000 to near $80,000.
This new sell signal anticipates a 1-to-4 candlestick correction on the 3-day chart, which traders typically translate into a short pullback lasting roughly three to 12 days. Martinez identifies $67,500 as the immediate downside target if the correction unfolds as expected. He warns that failure to find support around that level could open the door to a deeper retracement, potentially exposing areas between $40,000 and $50,000. Despite the short-term risk, he stresses Bitcoin’s broader macro structure remains bullish and advises long-term holders to monitor price action around $67,500 for confirmation.
Market snapshot
At the time of reporting, Bitcoin traded near $78,657 after a slight retrace from about $79,000, showing a 0.68% gain on the daily chart. Daily trading volume has declined by roughly 56%, suggesting limited participation behind the recent advance. On the monthly timeframe, BTC is up about 17.53% following April’s rebound. Key resistance sits near $80,000 — a decisive break above that level would help reinforce a bullish recovery.
Bitcoin’s market cap is around $1.57 trillion, giving it about 60.4% of crypto market dominance and positioning it among the world’s largest assets. Traders will likely watch short-term price action closely to see whether the TD Sequential’s sell setup leads to a brief pullback to $67,500 or a deeper correction.