Bitcoin Dumps to 17-Day Low, But Key Metric Flashes Rebound Signal
Bitcoin’s latest rejection at the $87,000 range wasn’t just a small deviation from the asset’s path forward, as it slumped by several grand to a multi-week low of just over $82,000.
While the macro landscape remains gloomy, a popular technical tool has flashed a rebound signal.
Why Did BTC Drop?
Recall that the cryptocurrency challenged the $87,000 area on several occasions in late September and early October. It last jumped past it on Friday after the weaker-than-expected US jobs report. However, it crashed almost immediately by three grand. Nevertheless, the bulls stepped up in the following days, and BTC neared that level on Monday morning and was close on Tuesday.
That’s when the entire market landscape changed. As reported yesterday, BTC slumped by $2,000 in 20 minutes or so. One of the possible reasons behind this was the US government’s decision to move a portion of its crypto holdings (BTC and BNB), some of which ended up on Coinbase.
However, bitcoin didn’t stop there, and the bears drove it further south earlier today to just over $82,000, its lowest price tag in over two weeks. This nosedive coincided with new reports that US President Donald Trump is not keen on making a permanent deal with Iran and even threatened to resume the strikes soon.
Rebound Soon, Though?
Bitcoin’s major leg down triggered a popular technical tool, the TD Sequential, which flashed a buy signal on its hourly chart. The first sign came when the asset tapped the $83,000 support, even though it slipped further below that line before rebounding to it as of press time.
Ali Martinez argued that the correction over the past 36 hours came after a sell signal from the same indicator, which reportedly happened when BTC stood near the $87,000 resistance on Tuesday.
BITCOIN REBOUND INCOMING?
The TD Sequential just flashed a buy signal on Bitcoin’s hourly chart, right around the $83,000 support.
That makes this signal particularly interesting.
The correction over the past 24 hours was preceded by a sell signal from the same indicator.
Now, with the TD Sequential flipping bullish at support, I’m watching closely for a potential $BTC rebound.
— Ali Charts (@alicharts) October 7, 2026
In a previous post on the matter, Martinez urged investors to buy the dip as “BTC has been here before.” The chart he provided outlined similar price movements over the past several weeks, each ending up with a bigger leg up. His latest prediction envisions a price surge to and slightly beyond $90,000.