Bitcoin continues to consolidate in the $78,000 zone after net positive results in April. After showing key signs of recovery, the leading cryptocurrency is now gaining momentum for another major price move. While waiting, a key negative trade signal emerged.

TD Sequential Highlights Bitcoin’s Critical Support

In Post X On May 2, veteran market analyst Ali Martinez postulates that Bitcoin may soon experience another wave of price corrections, following the latest TD Sequential data. The maiden cryptocurrency has become a major casualty of the market winter, setting a cycle low of $60,000 and currently trading 37.85% below its all-time high of $126,100.

April brought significant relief from the bear market, with prices increasing net by 14%. However, TD Sequential, a trading indicator primarily used to identify potential trend reversals and exhaustion, confirms the return of bearish sentiment.

A up-to-date sell signal for Bitcoin has just appeared $BTC.

The Tom DeMark (TD) Sequential Indicator signals trend exhaustion on the 3-day chart, marking the first major bearish turning point of the year.

This setup predicts a correction from candle 1 to 4 on a 3-day time horizon.… pic.twitter.com/NNhYWBvXDa

— Ali Charts (@alicharts) May 2, 2026

According to Martinez, TD Sequential is signaling trend exhaustion on the 3-day BTCUSDT chart. Interestingly, this event marks the first bearish change in the indicator in 2026. The last signal from TD Sequential came in February – a buying incentive that proved successful, resulting in a 32% gain in the range of $60,000 to approximately $80,000.

The latest sell setup is for a 1- to 4-candle correction over a 3-day time horizon, i.e. a short-term pullback that could occur in about three to 12 days before the broader trend resumes or consolidates. As such, Martinez emphasized that $67,500 would be an immediate downside target if this negative trend develops.

However, the analyst warns that price dynamics may not stabilize around this level. In this case, a deeper correction could occur, 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 monitor the price action at $67,500 for confirmation of a trend in both directions.

Bitcoin market overview

At the time of publication, Bitcoin is trading at $78,657, after immediately rebounding after reaching $79,000. The top cryptocurrency is seeing a slight enhance of 0.68% on its daily chart. However, daily trading volume dropped by an astonishing 56%, suggesting little market share behind the recent surge.

On the monthly chart, Bitcoin is up 17.53% amid April’s recovery. However, the premier cryptocurrency faces key barriers, such as $80,000, that need to be broken to strengthen the case for a bullish recovery. With a market capitalization of $1.57 trillion, Bitcoin has 60.4% market dominance and is the 11th largest asset in the world.

Featured image from Vecteezy, chart from Tradingview