Bitcoin continues to consolidate within the $78,000 zone, following its net positive performance in April. Having shown key signs of recovery, the leading cryptocurrency is now gathering momentum for its next major price swing. Amid the wait, a pivotal negative trading signal has emerged.
TD Sequential Highlights Critical Bitcoin Support
In an X post on May 2, seasoned market analyst Ali Martinez postulates that Bitcoin could soon endure another wave of price correction, following the latest TD Sequential data. The maiden cryptocurrency has been a major victim of the market winter, establishing a cycle low of $60,000 and presently trading 37.85% below its all-time high of $126,100.
April brought much bullish relief amid this bear market, with prices surging by a net 14%. However, the TD Sequential, a trading indicator largely used to identify potential trend reversals and exhaustion, is backing a resurgence in bearish sentiment.
A new sell signal has just flashed for Bitcoin $BTC.
The Tom DeMark (TD) Sequential indicator is signaling trend exhaustion on the 3-day chart, marking the first major bearish pivot of the year.
This setup anticipates a 1 to 4-candlestick correction on the 3-day timeframe.… pic.twitter.com/NNhYWBvXDa
— Ali Charts (@alicharts) May 2, 2026
According to Martinez, the TD Sequential is flashing a trend exhaustion signal on the BTCUSDT 3-day 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 buy trigger which proved successful, resulting in 32% gain between $60,000 to around $80,000.
This latest sell setup anticipates a 1 to 4-candlestick correction on the 3-day timeframe, i.e., a short-term pullback that could unfold over roughly three to 12 days before the broader trend resumes or consolidates. In this respect, Martinez has 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 that case, a deeper correction may 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 trend confirmation in either direction.
Bitcoin Market Overview
At press time, Bitcoin trades at $78,657, following an immediate retrace after hitting $79,000. The premier cryptocurrency reports a minor 0.68% gain on its daily chart. However, its daily trading volume is down by a staggering 56%, suggesting little market participation behind its most recent gain.
On the monthly chart, Bitcoin is up 17.53% owing to its April revival. However, the premier cryptocurrency faces key barriers ahead, such as $80,000, which must be broken to strengthen the case for a bullish recovery. With a market cap of $1.57 trillion, Bitcoin holds 60.4% market dominance and ranks as the 11th-largest asset in the world.














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