Bitcoin continues to consolidate within the $78,000 zone following April’s net positive performance. After showing major signs of recovery, the leading cryptocurrency is now gathering momentum for its next big price swing. Amid the wait, a crucial negative trading signal has emerged.
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TD Sequential Highlights Critical Bitcoin Support
In one X message on May 2, veteran market analyst Ali Martinez postulates that Bitcoin could soon endure another wave of price corrections, following the latest TD Sequential data. The first cryptocurrency has been a major casualty of the market winter, hitting a cycle low of $60,000 and currently trading 37.85% below its all-time high of $126,100.
April brought a lot of positive relief during this bear market, with prices rising a net 14%. However, the TD Sequential, a trading indicator largely used to identify potential trend reversals and exhaustion, is supporting a resurgence in bearish sentiment.
A new sell signal for Bitcoin has just flashed $BTC.
The Tom DeMark (TD) Sequential indicator signals 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 candlesticks within a 3 day time frame.… pic.twitter.com/NNhYWBvXDa
— Ali Charts (@alicharts) May 2, 2026
According to Martinez, the TD Sequential is providing a trend exhaustion signal on the three-day BTCUSDT chart. Interestingly, this event represents the first bearish shift in the indicator in 2026. The last signal from the TD Sequential came in February – a buying trigger that proved successful and resulted in a 32% gain between $60,000 and around $80,000.
This latest sell setup expects a correction of 1 to 4 candlesticks within a three-day time frame, i.e. a short-term pullback that could unfold in about three to twelve days before the broader trend resumes or consolidates. In this regard, Martinez has highlighted $67,500 as an immediate downside target if this negative play unfolds.
However, the analyst warns that price momentum may not stabilize around this level. In that case, a deeper correction could take place, exposing investors to lower levels around $40,000-$50,000. Martinez also reiterates that Bitcoin’s macro structure remains bullish, and long-term investors should keep an eye on the price action at $67,500 to confirm trends in either direction.
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Bitcoin Market Overview
At the time of writing, Bitcoin is trading at $78,657, following an immediate pullback after hitting $79,000. The leading cryptocurrency reports a small gain of 0.68% on the daily chart. However, daily trading volume is down as much as 56%, suggesting little market participation behind the most recent gains.
On the monthly chart, Bitcoin is up 17.53% thanks to the April rebound. However, the leading cryptocurrency faces significant barriers going forward, such as $80,000, which must be broken to strengthen the case for a bullish recovery. With a market capitalization of $1.57 trillion, Bitcoin has a market dominance of 60.4%, making it the eleventh largest asset in the world.
Featured image from Vecteezy, chart from Tradingview