Bitcoin (BTC) rallied 7.41% in the last seven days and is, at press time on April 15, changing hands at $85,753.
The week also featured two dramatic moves, with the first seeing a plunge near $75,000 and the other a subsequent 15% recovery.
Despite the positivity, the world’s premier cryptocurrency appears poised for another downward shift. Technical analysis (TA) based on both the hourly and four-hour charts indicates a correction is imminent.
Specifically, the prominent on-chain analyst Ali Martinez issued a cautionary X post on April 15, warning that TD Sequential is flashing a sell signal:
Caution ahead! The TD Sequential is flashing sell signals for #Bitcoin $BTC on both the 1-hour and 4-hour charts.
TD Sequential is a technical analysis tool that uses an asset’s performance over time to determine whether the prevailing trend will persist or if a reversal is in order. It was first described by the famous analyst Tom DeMark in his 1994 book ‘The New Science of Technical Analysis.’
How low will Bitcoin crash?
Though Martinez offered no insights into how low BTC might fall, his previous analyses reveal two important levels to monitor.
On April 14, he warned that investors accumulated 96,580 BTC at $82,024, rendering the price point an important support zone. In an April 13 post, Martinez explained that $79,000 is another important Bitcoin support level.
Still, previous performance demonstrates that falling to $75,000 is not an unrealistic prospect, with a greater downside also being possible as, in recent weeks, the world’s flagship digital asset has, on multiple occasions, plunged to new 2025 lows.
Simultaneously, a drop below $80,000 appears exceptionally unlikely, barring new adverse external developments, as previous downturns have, for the most part, been driven by macroeconomic headwinds such as the Liberation Day tariffs.
Why Bitcoin could rally instead
Lastly, as Finbold reported on April 14, the current bullish momentum has enabled BTC to close above its 50-day moving average (MA) on Saturday for the first time since early February, making a retest of the $99,500 resistance possible.
However, the bullish scenario is far from guaranteed in large part thanks to overall market sentiment being profoundly shaken, increasing the odds of traders selling on smaller upward moves to evade losses in possible future deep retracements.
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