According to an analysis by expert Ali Charts, Bitcoin looks set for a brief break from its recent ascent. The TD Sequential indicator is flashing red on the 4-hour timeframe, suggesting that Bitcoin may cool down before another move upward.
Moreover, he highlights key levels to watch, including resistance zones and potential support areas, warning traders to remain cautious.
The 4-hour chart of Bitcoin shows a “9” displayed by the TD Sequential indicator. After a prolonged rise, this signal often indicates a brief reversal or cooling-off period.
https://twitter.com/ali_charts/status/1868589656390123593
A recent rally in Bitcoin brought it to about $106,554, which is the 1.0 Fibonacci retracement level. At this price position, nevertheless, the asset encountered resistance, which triggered off the TD Sequential sell signal.
At the time of Ali’s analysis, Bitcoin retraced to approximately $104,642. The presence of the sell signal suggests that BTC may struggle to maintain upward momentum in the immediate term.
Analysts typically view this indicator as a warning of a potential pullback before a continuation of the broader trend. At press time, BTC trades around $106,974.78 up by 2.53% over the past day.
Key BTC Price Levels to Watch
Bitcoin’s recent movement has brought attention to key Fibonacci retracement levels.
Resistance at the 1.0 Fibonacci level, $106,554, has proven significant, as BTC failed to close above it. If the rally resumes, the next upside target sits near the 1.272 Fibonacci extension at $110,180.
On the downside, immediate support lies at the 0.786 Fibonacci level around $103,785.
Should BTC face further selling pressure, stronger support levels are found at $101,663 (0.618 Fibonacci) and the psychological $100,000 zone, which often attracts traders. Deeper corrections may test lower levels at $98,754 (0.382) and $96,996 (0.236).
Read also: Why Is ONDO Price Pumping?
Market Sentiment and Trader Reactions
Ali also noted market sentiment has reached an “extreme greed” phase, a signal that often prompts caution among traders.
In his tweet, the analyst revealed he is holding 30% of his trading account in cash while maintaining his long-term HODL position. Extreme sentiment indicators can serve as red flags for potential reversals, as markets may overextend.
https://twitter.com/ali_charts/status/1868654253742620723
Some altcoins have also started retracing, triggering buy orders for traders like Ali. Despite the pullback risk, traders are keeping cash reserves for flexibility in the event of further corrections or new opportunities.
Overall Trend Remains Bullish
Despite the short-term correction risk, Bitcoin’s overall trend remains bullish. The asset continues to form higher highs and higher lows, indicating upward momentum.
The recent sell signal may offer traders an opportunity to reassess positions and prepare for the next move. If Bitcoin successfully holds key support levels, its broader trend could resume, targeting higher resistance zones.
However, failure to maintain these supports may lead to a more extended pullback.
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The post Bitcoin (BTC) Price Faces Potential Correction – Here’s Why appeared first on CaptainAltcoin.
