Bitcoin has recently flashed a bearish signal, igniting concerns about a significant price correction. The cryptocurrency has already retraced nearly 26% from its all-time high, fueling speculation of a potential bear market.
SuperTrend Indicator Flashes Sell Signal
A key indicator, the SuperTrend, has issued a sell signal, reminiscent of a similar warning in 2022. Back then, Bitcoin, after reaching approximately $69,000, plummeted to around $17,000. Analyst Ali Martinez noted that should history repeat itself, Bitcoin could potentially fall to around $31,185.
Death Cross Emerges
Adding to the bearish outlook, a 'death cross' has appeared, with the 50-day moving average crossing below the 200-day moving average for the first time since April 2025. Historically, this technical signal has often preceded rallies. However, analyst Doctor Profit pointed out a crucial difference this time: the death cross occurred while Bitcoin was trading 6% below the 50-day exponential moving average (EMA50). This, combined with ETF sell-offs and whale outflows, has intensified bearish sentiment.
Potential Price Targets
"Mr. Wall Street" suggested the recent Bitcoin price peak might have been around $126,000. He anticipates a substantial downward move, potentially driving Bitcoin to between $74,000 and $82,000, with a longer-term target of $54,000 to $60,000 by late 2026.
Current Market Conditions
Bitcoin is currently trading slightly above $94,500. However, a drop below $94,600 could trigger further selling pressure. Investor Louis Navellier noted Bitcoin is down over 20% from its all-time high of $126,272 reached in October and breaking key technical levels by falling below $100,000.
ETF Performance
Major exchange-traded funds (ETFs) that track Bitcoin have also experienced declines. The iShares Bitcoin Trust ETF, Fidelity Wise Origin Bitcoin Fund, and Grayscale Bitcoin Trust ETF have each fallen more than 8%. Furthermore, investors have reduced their exposure to both Bitcoin and Ethereum, with significant ETF outflows recorded.
Broader Market Concerns
Concerns regarding delayed economic data, stemming from the resolution of the government shutdown, are also influencing market sentiment. These delays could potentially prompt the Federal Reserve to reconsider its anticipated rate cuts at the December meeting and beyond. Market analysts have adjusted the probability of a rate cut next month to 45%, while a majority (54%) foresee no change.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves substantial risk of loss. Conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
