Bitcoin (BTC) recently closed its June monthly candle above $100,000, fueling optimism among bullish investors. However, a rare technical signal has emerged, suggesting a potential significant price correction in the coming months.
The TD Sequential Sell-Signal: A Rare Warning
Seasoned crypto analyst Ali Martinez recently highlighted that Bitcoin triggered a Tom Demark (TD) Sequential sell-signal on the quarterly chart. This rare indicator has historically preceded major price declines:
- 2015: Followed by a 75% drop in BTC.
- 2018: Preceded an 85% crash.
Martinez warns that if history repeats, Bitcoin could plummet to $40,000—a 64% decline from current levels.
What Is a Quarterly TD Sequential Sell-Signal?
This technical indicator appears after prolonged bullish trends, signaling exhaustion. It suggests:
- Long-term trend fatigue.
- High probability of a sharp correction.
👉 Why Bitcoin’s TD Sequential signal matters for long-term investors
Diverging Analyst Views
Bullish Counterarguments
- CryptoGoos: Disputes comparisons to the 2021 double-top pattern, emphasizing strong market structure.
- Jelle: Notes BTC’s breakout from a 3-day bullish pennant, suggesting upward momentum.
- Merlijn The Trader: Identifies a falling wedge breakout and bull flag formation, projecting a $140,000 target.
Key Technical Factors
- Weekly RSI: Approaching upper trendline, historically aligning with new ATHs.
- Current ATH: $111,814 (May 22).
FAQs
Q: How reliable is the TD Sequential signal?
A: Historically accurate but not infallible. Past performance doesn’t guarantee future outcomes.
Q: What’s the bullish case for Bitcoin?
A: Breakouts above $110,000** could target **$130,000–$140,000, per technical patterns.
Q: Should investors panic?
A: Diversification and risk management are crucial. Signals are one tool among many.
👉 How to navigate Bitcoin’s volatility like a pro
Price Action & Outlook
At press time:
- BTC: $109,438 (+2.9% 24h).
- Immediate resistance: $110,000.
- Support levels: Watch $100,000** and **$90,000.
Final Thoughts
While the TD Sequential signal raises caution, conflicting technical analyses and bullish patterns keep the market dynamic. Investors should:
- Monitor key levels.
- Avoid overleveraging.
- Stay updated on macro trends.
👉 Bitcoin’s next big move: What analysts are watching
Disclaimer: This content is for informational purposes only and not financial advice.
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