Bitcoin (BTC) May Be Headed for a Pullback. Here’s Why

Bitcoin’s bullish momentum could soon face a significant pause , according to fresh technical signals. Crypto analyst Ali, in a post shared on X , highlighted that the TD Sequential indicator has now issued a sell signal on Bitcoin’s 3-day chart—an alert that historically precedes short-term reversals or corrections in price. This signal comes at a time when Bitcoin has been riding a wave of optimism, fueled by institutional demand, spot ETF flows, and macroeconomic uncertainty driving investors toward decentralized assets. However, as markets often do, even strong trends can stall or correct when technical conditions become overstretched. #Bitcoin $BTC may be due for a pullback, with the TD Sequential flashing a sell signal on the 3-day chart! pic.twitter.com/sCcX71939D — Ali (@ali_charts) May 4, 2025 TD Sequential Indicator Flags Reversal Risk The TD Sequential is a time-based technical analysis tool developed by Thomas DeMark, used to identify potential points of trend exhaustion. When the setup is completed on higher timeframes, such as the 3-day chart referenced by Ali, it tends to carry more weight. In this case, the indicator has signaled that Bitcoin may be in the final stages of its current upswing, increasing the probability of a near-term retracement. Historically, when the TD Sequential flashes a “9” sell signal on multi-day charts, Bitcoin often undergoes a cooling-off period, which can last anywhere from several days to a few weeks. This does not necessarily imply a long-term trend reversal, but rather a corrective phase or consolidation before any potential continuation of the broader rally. Market Context and Price Behavior Bitcoin recently surged above $94,000. Spot Bitcoin ETFs have pulled in billions in net inflows, contributing to upward pressure on prices. But as is often the case, technical indicators like TD Sequential are designed to look past hype and assess patterns of price exhaustion. Traders and analysts often use the signal as a warning to tighten stop losses, take partial profits, or avoid new long entries until a clearer picture of market direction emerges. Given that Bitcoin’s current rally has been steep and relatively uninterrupted, a temporary pullback would not be unexpected. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Looking Ahead: Pullback or Deeper Correction? The key question now is whether the signal will play out as a brief pause or trigger a deeper correction. Much will depend on market sentiment, macroeconomic indicators, and the behavior of large holders during the next few sessions. On-chain data has not yet shown major distribution from whales, but if selling pressure intensifies in the wake of the signal, support levels around $90,000 and $85,000 could be tested. For long-term investors, such a pullback might be viewed as a healthy rebalancing, especially if fundamentals remain strong. But for short-term traders, the TD Sequential alert from Ali provides a timely reminder to manage risk and prepare for possible volatility ahead. Bitcoin remains in a broader bull market narrative, but even in such phases, price action is rarely linear. With technical indicators now flashing caution, the market may be due for a breather before attempting new highs. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Bitcoin (BTC) May Be Headed for a Pullback. Here’s Why appeared first on Times Tabloid .

Source: TimesTabloid