Bitcoin Price Alert: This Indicator Signals SELL, Could History Repeat With A 67% Drop?
Overview
Bitcoin has recently experienced a notable pullback, retracing nearly 26% from its all-time highs. This decline has sparked speculation about the potential onset of a new bear market, especially with the emergence of a sell signal from a key market indicator.
Current Market Situation
The Bitcoin price is currently trading just above $94,500. Market expert Ali Martinez highlighted a significant sell signal generated by the SuperTrend indicator, which last issued a similar alert in 2022. At that time, Bitcoin reached an all-time high of $69,000 before plummeting to around $17,000. Historical trends suggest that if the current situation mirrors past patterns, Bitcoin could face a steep decline, potentially falling to around $31,185.
Another analyst, Mr. Wall Street, has suggested that the recent peak for Bitcoin might be around $126,000, forecasting a possible downward movement to levels between $74,000 and $82,000, ultimately reaching a target between $54,000 and $60,000 by the fourth quarter of 2026. This perspective reinforces the notion that Bitcoin may be entering a bear market characterized by price fluctuations reminiscent of previous cycles.
Technical Indicators
Adding complexity to the current market outlook, analyst Doctor Profit noted the emergence of a death cross, which occurs when the 50-day moving average crosses below the 200-day moving average. This event has historically been followed by rallies ranging from 25% to 60% over the next three months. However, this instance is particularly noteworthy as it occurred while Bitcoin was trading 6% below the 50-day exponential moving average, suggesting a shift in market sentiment compared to previous occurrences.
The bearish sentiment is further exacerbated by negative trends in exchange-traded fund (ETF) sales and whale net volume, which are applying additional pressure on the Bitcoin price. The average entry price for Bitcoin buyers over the past six months is approximately $94,600. A decline toward or below this level could prompt fresh selling pressure, as short-term traders typically exit at breakeven or at a slight loss.
Doctor Profit concluded that the combination of ETF selling, whale selling, and a significant number of sellers positioned at breakeven levels creates a precarious market environment, adding to the bearish outlook.
Impact on the crypto market
- The emergence of a sell signal from the SuperTrend indicator raises concerns about a potential new bear market for Bitcoin.
- Historical patterns suggest that significant declines could occur, with potential price targets based on past performance.
- The recent death cross adds a technical element that could influence market sentiment and trading behavior.
- Negative trends in ETF sales and whale net volume contribute to the overall bearish sentiment, increasing selling pressure.
- The average entry price of Bitcoin buyers indicates that many investors may be poised to sell if prices fall further, potentially leading to increased volatility.
Updated: 11/18/2025, 4:28:30 AM
