Bitcoin SuperTrend Sell Signal Points to Potential 77% Drop
Bitcoin’s weekly SuperTrend indicator has flipped to a sell signal, closing below the 50-week moving average. This Bitcoin SuperTrend sell signal historically preceded major bear market drops. Past signals in 2018 and 2022 triggered corrections of 84% and 77%, respectively. If history repeats, BTC could slump toward $75,000 amid weak demand from treasury firms and U.S. spot ETF outflows.
The Crypto Fear & Greed Index has plunged to 11, marking “Extreme Fear” and the lowest reading since February. Such sentiment extremes often coincide with deep corrections or trend reversals. Analysts outline two scenarios: a sharp fall followed by a rapid rebound to new highs, as in mid-2021, or a prolonged decline mirroring the 2022 bear market. Some strategists foresee a reversal within 2–3 weeks.
Traders should monitor the SuperTrend indicator and fear index closely. The Bitcoin SuperTrend sell signal and peak fear levels signal heightened caution and potential short-term downside, amid possible medium-term rebound opportunities.
Bearish
The Bitcoin SuperTrend sell signal, confirmed by the close below the 50-week moving average, historically signals major bear market entries. Combined with extreme readings on the Crypto Fear & Greed Index, these factors point to heightened selling pressure and a risk of significant downside toward $75,000. Short-term market behavior is likely to remain bearish until a reversal signal emerges, though a rebound could follow once sentiment hits bottom. Traders should prepare for increased volatility and downside risk in the near term.