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Sell ​​Alert: Bitcoin Is Facing an Imminent Correction

After months of excitement about a potential rally to unprecedented highs toward $100,000 or, according to some prominent investors, toward $300,000, a new one was building in the wake of the approval of spot exchange-traded funds (ETFs). Record value near $73,000 and the halving on April’s event left Bitcoin (BTC) price action relatively stagnant and even threatened a collapse in early May.

Midway through the month – and especially after the latest CPI report came in lower than feared – the world’s leading cryptocurrency regained momentum, gaining nearly 5% in a week and rising from a low near $60,000 to a price of $66,357 -dollars at press time.

BTC 7 day price chart. Source: Finbold

While many traders hope that the rally signals an end to the crypto market’s stagnation phase and a full return to the bull cycle, technical analysis (TA) analysis shows that it may not just continue.

TD Sequential warns of an impending BTC correction

Shortly after Bitcoin’s recent rally gained momentum, Ali Martinez, a well-known crypto analyst, shared in X that the world’s leading cryptocurrency may be facing an imminent correction.

TD Sequential, a popular technical analysis tool designed to detect the timing of a trend reversal or confirmation by analyzing an asset’s past performance over a set period of time, issued a strong sell signal on Bitcoin’s 4-hour chart, according to the expert.

BTC candlestick chart with TD Sequential applied. Source: @ali_charts

Martinez also added that the correction will likely extend over a period of between one and four candlesticks.

Bitcoin price chart

Although technical analysis might suggest a price decline, Bitcoin has seen a significant increase in the recent past.

In fact, after a period of consolidation and increased volatility coupled with mostly sideways trading, the coin has re-entered the rally that has resulted in a 54.46% increase since the start of 2024.

BTC YTD price chart. Source: Finbold

Although BTC has yet to reach the highs reached in March, the recent rise has allowed the cryptocurrency to recoup losses from early May, and Bitcoin is very close – with a 5.73% increase on the 30-day chart its April 22 highs.

Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.