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After months of enthusiasm about a potential rally to unprecedented highs toward $100,000 or – according to some prominent investors – toward $300,000, building up in the wake of spot exchange-traded funds (ETFs) approval, a new record value near $73,000, and the halving event in April, Bitcoin ($BTC) price movement turned relatively stagnant and even threatened a collapse in early May.
By the middle of the month – and particularly after the latest CPI report came out lower than was feared – the world’s premier cryptocurrency again took off, gaining nearly 5% in a week and surging from a low near $60,000 to a press time price of $66,357.
While many traders are hopeful the rally signals an end to the crypto market’s stagnant phase and a full return to the bull cycle, technical analysis (TA) analysis reveals that it may not be just smooth sailing ahead.
TD Sequential warns of imminent $BTC correction
Shortly after the most recent Bitcoin rally gained steam, Ali Martinez, a prominent crypto analyst, shared in X that the world’s premier cryptocurrency may be facing an imminent correction.
TD Sequential, a common technical analysis tool designed to detect the timing of a trend reversal of confirmation by analyzing an asset’s earlier performance over a set time frame, issued a strong sell signal on Bitcoin’s 4-hour chart, per the expert.
Martinez also added that the correction is likely to unfold over between one and four candlesticks.
Bitcoin price chart
Though technical analysis may indicate a price drop, Bitcoin has, in the recent past, experienced a significant surge.
Indeed, after undergoing a period of consolidation and heightened volatility paired with mostly sideways trading, the coin has reentered the rally that has seen it rise 54.46% since the start of 2024.
Though $BTC is yet to reclaim the highs reached in March, the most recent surge has enabled the cryptocurrency to erase the losses of early May, and Bitcoin is – having risen 5.73% in the 30-day chart – very close to its highs from April 22.
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