🚨 Bitcoin Alert: Top Analyst Predicts Sharp Drop to $40K as Key Sell Signal Triggers

Bitcoin's bull run hits a red flag—one of crypto's most trusted indicators just flipped bearish. Here's what happens next.

### The Sell Signal Nobody Wants to See

A historically accurate trading metric—the kind that makes hedge funds sweat—is flashing its first major warning since Bitcoin's 2025 rally began. No fancy jargon: price could nosedive toward $40,000 if history repeats.

### Why This Time *Actually* Might Be Different

Market veterans know sell signals get ignored… until they don't. This indicator called the 2022 crash within 3%—and now it's screaming 'overbought' louder than a crypto bro at a Lambo dealership.

### The Silver Lining (Because This Is Crypto)

Every dip breeds opportunity—just ask the 'buy the fear' crowd stacking SATs since 2013. But maybe skip the leverage this time unless you enjoy margin calls with your morning coffee.

*Final thought: Wall Street still can't decide if crypto's a hedge or a hazard—but at least the volatility never takes a vacation.*

Independent crypto analyst Ali Martinez cautioned of a potential downside for Bitcoin after spotting a bearish signal from a reliable technical indicator.

In a recent post on the X platform, Martinez told his followers that the Tom DeMark (TD) Sequential indicator, which has predicted every major bitcoin crash, had flashed again. The indicator, according to Martinez, was warning that a 63% reversal could be in the offing.

“The Tom DeMark Sequential just gave a quarterly sell signal. This is a rare warning that has historically preceded brutal drawdowns,” the pundit stated.

Martinez noted that the TD Sequential sent a sell signal in 2015, and a 75% Bitcoin drop ensued. In 2018, the same setup saw Bitcoin plummet by over 85%.

The TD Sequential indicator is an oscillating trend-following chart overlay indicator that is used to identify short-term trend reversals based on changes in intraday highs and lows. In other words, the indicator sparks when an asset sees an overextended rally and is due for a brutal correction.

In this case, the indicator predicts that the BTC price could see a frantic drop from the current level, dropping as much as 63%, to trade hands at around $40,000. Such a move would mark a huge drawdown as Bitcoin has been trading above the psychologically important $100K level for the most part in recent months.

Today, BTC topped the $110,000 mark for the first time since June 11 after U.S.-listed spot Bitcoin exchange-traded funds (ETFs) drew in roughly $408 million on Wednesday — a sign of investors’ unwavering confidence. Since May 1, these BTC products have registered $9.91 billion in inflows, approximately 20% of their total inflows since launching in January 2024, data from Farside shows.

The world’s largest and oldest crypto was valued at $110,295 as of publication time, a more than 2.4% gain since Wednesday.