Ali Martinez factors to a uncommon three-day sign that traditionally appeared simply earlier than Bitcoin’s last bear-market plunges.
A key technical sign that has foreshadowed the ultimate capitulation part of earlier Bitcoin (BTC) bear markets is flashing once more.
In accordance with chartist Ali Martinez, a “demise cross” on the three-day chart may very well be confirmed in late February, doubtlessly sending BTC to $40,000 and even $30,000.
The Dying Cross Sample and What Historical past Reveals
Martinez pointed to the three-day chart as a vital timeframe for understanding Bitcoin’s macro construction, noting that the interplay between the 50 and 200 easy shifting averages on this chart has reliably signaled the final main draw back transfer since 2014.
“The demise cross between these two shifting averages on the 3-day chart has constantly preceded the ultimate leg down of a bear market,” the dealer wrote.
Following the 2013 high, Bitcoin dropped greater than 72% earlier than the demise cross printed in December 2014, after which it fell one other 52%. After the 2017 peak, the demise cross appeared in November 2018, coming simply earlier than a last 50% decline. The sign emerged once more in Might 2022, following the 2021 high, which led to a further 45% drop.
Bitcoin registered a brand new all-time excessive (ATH) in October 2025 when it went above $126,000, however the present value, which had recovered to simply over $66,000 on the time of writing after earlier shedding about $4,000 in solely a matter of hours, is almost 48% beneath that ATH.
With a possible demise cross projected for late February, Martinez warns that if historical past repeats even partially, an extra 30% decline would place Bitcoin close to $40,000, whereas a 50% drop may take it to $30,000.
Nonetheless, the market watcher was fast to notice that there have been no ensures the worth drops would occur, regardless that the present construction matches up with historic setups that led to the final main draw back strikes earlier than macro bottoms shaped.
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Market Response and On-Chain Divergence
Bitcoin is at present down about 2.5% within the final 24 hours and greater than 4% over the previous week. It has additionally misplaced almost 27% of its worth previously month, a drop exacerbated by US President Donald Trump’s latest announcement of a ten% (later upgraded to fifteen%) momentary world tariff after the nation’s Supreme Courtroom struck down lots of the earlier tariffs the Trump administration had imposed beneath a 1977 emergency regulation.
As seen throughout previous tariff-related volatility, the influence on Bitcoin was not speedy however arrived as soon as legacy futures markets opened. It additionally sparked a coordinated bearish impulse within the futures market, with knowledge from analyst Axel Adler Jr. showing that taker promote quantity spiked to $2.3 billion in a single hour, accompanied by pressured lengthy liquidations of roughly 1,247 BTC price greater than $81 million.
Sentiment knowledge confirmed the liquidation cascade, noting open curiosity dropped to $19.5 billion, which is lower than half its January peak, resulting in skyrocketing detrimental sentiment, and the Bitcoin market coming into “FUD mode.”
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