Bitcoin is showing early weakness after a new TD Sequential sell signal appeared on the 3-day chart, as noted by Ali Charts on May 2. It suggests trend exhaustion after a strong recovery, with a possible short-term correction ahead lasting 1 to 4 candles.
At the moment, Bitcoin finds itself in a range of levels where stability is very crucial. The key level is at $67,500. BTC being above that level will preserve the general pattern intact; however, a drop beneath that level may initiate a bearish countdown.
Source: X
This is a much stronger signal since it follows a previous one in February 2026, which was very successful. The first buy signal was an indicator for a massive rally that increased Bitcoin’s price by approximately 32%, going from roughly $60,000 to $80,000.
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Market Structure Shows Shift From Capitulation to Recovery
If we analyze the chart overall, we can see that there have been distinct stages for Bitcoin. Its price initially reached a high of $120,000-$126,000 before slowing and retracing significantly through the $109,000 support level. Bitcoin has entered its correction stage.
On the other hand, Bitcoin prices collapsed fast early in February as it moved towards the price range of $59,800-$60,000.
The price range acted as an attractive buy point, as a sharp V-shape bounce was formed from that region. Afterward, Bitcoin has formed higher lows on its way to forming a base around the $70,000-$85,000 range.
Bitcoin Resistance Near $80K Tests Current Momentum
The daily chart on TradingView shows that the price of Bitcoin stands at $78,700, with its current position indicating that it is approaching a critical resistance level of $80,000–$83,000. This was a prior distribution level before the decline in February.
The signs are currently giving out contradicting signals. MACD has started to recover but is moving sideways, indicating that there might be an exhaustion in the current strength. The RSI level is at 62, making the current trend bullish without the risk of overbought status.
Source: Tradingview
The price action is showing some indecisiveness with smaller wicks near the resistance levels. The DEMA (9) acts as immediate support; the market seems to be consolidating currently.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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