ASC light flashing-loss of power

When I am in fifth gear and I hit about 4,500 RPM's (90 MPH), the ASC light starts to flash, and I lose power. Anyone have an idea why this is happening? I have a 1997 e36 M3 with 78,000 miles, manual transmission.

It happened to me in my 96 m3, I just pushed the button and went on with my day. After I got in an accident, I was pulling the rear suspension apart and the diff grease was like chocolate pudding. Might be time for a new diff fluids.

I'm going to take a guess and say it's the wheel speed sensor. It's picking up signal for gears 1-4 but as you go faster, the signal may be too weak to pick up at those wheel speeds. May just need a cleaning. Check for codes and see if I'm close or dead wrong

I am having this same problem,did you ever figure anything out?