Bitcoin Enters the “Danger Zone” – Key Indicators Flash Sell Signal

Bitcoin just triggered one of the most alarming technical signals of the past decade, and it’s happening at the exact moment leverage across exchanges is exploding. Traders are opening long positions, yet Bitcoin’s charts are flashing a warning that historically precedes deep, market-wide drawdowns.

Bitcoin’s technical outlook has turned sharply bearish. The weekly SuperTrend indicator, one of the few high-timeframe tools that has correctly signaled every bull-to-bear transition for more than 10 years, flipped bearish this week.

Exchange-wide estimated leverage ratios are surging to levels last seen before the 2021 flush and the 2018 capitulation. This means traders are aggressively increasing position sizes even as macro trend indicators deteriorate. Which is a classic setup for liquidation cascades.

Historically, when leverage accelerates during corrective structures, the next move tends to be violent, according to the analysis shared by renowned crypto trading specialist Ali Martinez in an X post on November 21.

At the same time, Martinez highlights a crucial on-chain pressure point at $82,045. Based on entity-adjusted distribution data, this price zone contains the single largest concentration of Bitcoin holdings in the current market. Essentially, a “last-resort” support cluster.

If this level breaks, the next major zone of dense holder activity does not appear until much lower levels. Indicating thin liquidity and a high risk of accelerated downside.

Key Technical Metrics Point to Growing Downside Pressure

At the same time, another risk factor is spiking. The estimated leverage ratio across exchanges is climbing rapidly as traders try to “catch the falling knife,” a setup that historically magnifies liquidation cascades rather than preventing them.

Martinez shared charts showing how each previous bearish SuperTrend shift aligned with major drawdowns: a 75% plunge in 2014, a 73% decline in 2018, a 55% fall in 2019, and a 38% pullback in 2021. In all cases, the signal triggered before the real damage began.

This time, the warning appears alongside weakening whale accumulation, declining liquidity across major spot markets, and BTC’s continued failure to reclaim the 50-week Simple Moving Average (SMA). Losing the 50-week SMA has previously correlated with corrections of up to 66%. Raising concerns that Bitcoin’s downside risk may extend far beyond $76,000.

Bitcoin Approaches Its Most Critical Support Level

For the time being, the flagship decentralized finance (DeFi) is trading at $82,067.52, recording a 10.78% dip on the day, declining 15.59% across the past week, and losing 24.23% over the month, according to the most recent price chart information.

The next question is simple but consequential: does Bitcoin defend $82,045, or does the downward momentum take full control?

On-chain distribution shows enormous clusters of BTC accumulated near that level. If the price holds, the market could form a long-term base, similar to previous cycle mid-corrections. If it fails, almost no dense holding clusters exist until significantly lower levels, opening the door to a sharper retracement.

Meanwhile, traders appear to be betting on a rapid reversal, historically one of the most dangerous patterns in BTC’s entire market structure. Martinez’s charts reveal that leverage has climbed even as the price continues to fall, widening the gap between risk and reward. This divergence has previously preceded liquidation-driven selloffs that flush out over-extended positions before any recovery can begin.

Against this backdrop, the Bitcoin market stands at a crossroads defined by three interacting pressures: a long-term bearish signal, high leverage exposure, and a critical support zone acting as the line between stability and deeper volatility.

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