Bitcoin (CRYPTO: BTC) has triggered five major sell signals in the past month, amplifying concerns that a deeper correction may still be unfolding.
What Happened: Crypto analyst Ali Martinez highlighted technical indicators flashing warning signs:
- The monthly MACD has turned bearish for the first time since January 2022. The last three bearish flips led to average drawdowns of ~60%, which, if repeated, could pull BTC toward the $40,000 region.
- A death cross has appeared on the daily chart as the 50-day SMA crossed below the 200-day SMA. Over the past year, similar crosses marked local bottoms, but during 2022 they foreshadowed a full bear market, leaving traders uncertain about which outcome lies ahead.
- Bitcoin has fallen below the 50-week SMA. Historically, breaks of this level have preceded deep market declines, including a 66% drawdown the last time this support failed.
- The SuperTrend indicator on the weekly timeframe has flipped bearish. This signal has reliably identified major trend reversals for more than a decade and often aligns with sizeable corrections.
- The bi-monthly TD Sequential has flashed a sell signal. The last two instances were followed by 78% and 32% drawdowns, respectively.
Martinez added that if Bitcoin extends its decline, the crucial support zones to monitor lie at $75,740, $56,160, and $52,820.
Also Read: Bitcoin AT $86,000, Ethereum, XRP, Dogecoin Stabilize On Monday Open
Why It Matters: In a separate post, Martinez warned that crypto market inflows have collapsed from $86 billion to just $10 billion over the past three months, signaling a sharp slowdown in demand.
At the same time, Bitcoin has entered extreme oversold territory on the RSI.
Historically, BTC has staged relief rallies shortly after hitting this zone, suggesting the potential for a rebound even in a broader downtrend.
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