-
Bitcoin (BTC) has experienced a sharp decline of 11% in the past week, falling below $90,000 for the first time since November 2024, signifying heightened market volatility.
-
In-depth analysis indicates bearish signals on technical indicators such as the Ichimoku Cloud, raising concerns about Bitcoin’s immediate price trajectory.
-
According to Tracy Jin, COO of MEXC, the ongoing liquidation of excess leverage is essential for Bitcoin’s long-term health in the market.
This article reviews Bitcoin’s recent significant price drop below $90,000, exploring technical indicators and whale activity impacting market sentiment.
Bitcoin Sees Bearish Trend Following Price Drop
Bitcoin (BTC) has faced significant downward pressure over the past week, with its price falling below $90,000 for the first time since November 2024. It is down 11% in the last seven days and is currently trading near a critical resistance level of $85,985. Recent market behavior is drawing close scrutiny from traders and analysts alike, as indications point toward a bearish outlook.
Technical indicators are showing predominantly bearish signals. The red cloud is positioned above the current price action and widening slightly, indicating increasing bearish momentum. Despite this short-term weakness, some analysts point to potential signs of recovery as short-term EMA lines begin to trend upward.
Bitcoin Ichimoku Cloud Shows a Bearish Setup
The Ichimoku Cloud for Bitcoin indicates a predominantly bearish sentiment as indicated by the positioning of the red cloud (Kumo) above the current price action. This placement signals a resistance zone that BTC would need to break through to reverse the trend. The cloud is also widening slightly, a sign of escalating bearish momentum.
The Leading Span A (green line) is positioned below the Leading Span B (red line), further confirming the bearish outlook. Furthermore, the price is trading below both the blue Tenkan-sen (conversion line) and the red Kijun-sen (baseline), suggesting the short-term trend remains under downward pressure.
The Tenkan-sen has started to flatten out, which typically signals a pause or consolidation in the downtrend; however, it remains below the Kijun-sen, reinforcing the bearish bias. The green Chikou Span (lagging line) is also below the price action and the cloud, supporting the continuation of the bearish trend. Overall, unless Bitcoin can push through the cloud resistance and the Tenkan-sen crosses above the Kijun-sen, the bearish momentum is likely to persist.
BTC Whales Are Reducing Their Holdings
The number of Bitcoin whales, defined as addresses holding at least 1,000 BTC, demonstrated steady growth until reaching a peak of 2,054 on February 22. Since that high point, however, the number has begun to decline, with the current count standing at 2,042 whale addresses.
Monitoring these large holders is crucial for market participants, as whale actions can significantly impact price movements. Their accumulation or distribution often precedes major market shifts, and their concentration levels provide insights into Bitcoin’s wealth distribution and overall network health.
The recent decline in whale addresses could signal short-term selling pressure, as these large holders may be taking profits or redistributing their holdings across multiple wallets for security purposes. While this could contribute to increased price volatility in the short term, it’s important to note that the current whale count remains historically elevated, suggesting ongoing strong institutional and high-net-worth interest in Bitcoin as a long-term store of value.
Tracy Jin, COO of MEXC, commented on the market dynamics: “The long-term trend remains unchanged: institutional demand and the development of Bitcoin infrastructure, including ETFs and new investment products, continue to strengthen its position. However, the short-term outlook is under pressure as the market is going through a phase of liquidation of excess leverage and a decrease in risk appetite.”
Will Bitcoin Recover Levels Above $90,000?
As it stands, Bitcoin possesses a significant resistance level at $85,985. A failure to maintain this support could lead to a downward movement towards the $82,000 range, contributing to the ongoing correction.
The proximity to this critical resistance level has created heightened tension amongst traders, who are exceedingly watchful for signs of direction in this volatile market. Despite the bearish configuration of Bitcoin’s Exponential Moving Average (EMA) lines, with short-term indicators positioned below their long-term counterparts, emerging signs suggest potential optimism.
“Despite the current decline, Bitcoin’s long-term trajectory remains strong. Institutional players continue to increase their positions in BTC, and the development of Bitcoin infrastructure—including ETFs and payment solutions—bolsters its status as digital gold. In the short term, the price needs to recover above $96,000-$100,000 to confirm readiness for new growth,” stated Maria Carola, CEO of StealthEx.
The upward trajectory of the short-term EMA lines suggests a possible trend reversal in the near future. If this bullish crossover materializes, Bitcoin may gain momentum to challenge the resistance at $93,000. A breakthrough at this level might propel prices toward the next significant target of $96,375, potentially signaling the resumption of the broader uptrend that has characterized much of Bitcoin’s recent performance.
Conclusion
In summary, Bitcoin’s recent drop below $90,000 raises significant concerns within the crypto community. While the bear trend is prevailing presently, the long-term fundamentals remain solid, backed by institutional interest and infrastructure advancements. Traders are encouraged to watch for key resistance levels and emerging market signals in the coming days, as these will dictate Bitcoin’s next moves.
