Bitcoin (BTC) has had a rough week, seeing its price dip below $90,000 – a level it hasn’t touched since November 2024. It’s currently down 11% over the last seven days and is hovering around $85,985, a price point that’s acting like a critical point of resistance.

Looking at the technical charts, the signals are mostly pointing downwards right now. The Ichimoku Cloud, visualized as a red cloud, is sitting above the current price and seems to be getting wider, suggesting that selling pressure is actually increasing. But, it’s not all doom and gloom – some analysts are spotting potential hints of a turnaround, with short-term EMA lines starting to nudge upwards.

Bitcoin Ichimoku Cloud Shows a Bearish Setup

The Ichimoku Cloud indicator for Bitcoin is definitely flashing red for bearish sentiment. That red cloud, known as the Kumo, is positioned right above where Bitcoin is trading, acting like a ceiling. Bitcoin needs to break through this zone to even think about changing direction. And as we mentioned, the cloud is also widening a bit, which unfortunately suggests the bearish momentum is picking up.

Further solidifying this bearish view, the Leading Span A (that’s the green line) is sitting below the Leading Span B (the red line). On top of that, Bitcoin’s price is currently trading below both the blue Tenkan-sen (the conversion line) and the red Kijun-sen (the baseline). All of this together suggests that the short-term trend is still very much under pressure to go lower.

Now, the Tenkan-sen line has started to flatten out a bit, which often means the downtrend might be pausing or consolidating. However, and this is key, it’s still below the Kijun-sen line, so the overall bearish feeling is still there.

The green Chikou Span, which is the lagging line, is also below both the price action and the cloud itself. This further supports the idea that the bearish trend could continue. Basically, unless Bitcoin can fight its way up through that cloud resistance and we see the Tenkan-sen cross above the Kijun-sen, we should probably expect the current downward momentum to stick around.

BTC Whales Are Going Down In the Last 5 Days

Let’s talk about the big players – Bitcoin whales. The number of these, meaning addresses holding at least 1,000 BTC, had been steadily growing, even hitting a peak of 2,054 addresses on February 22nd.

But since that high point, we’ve actually seen a decrease. The current count of whale addresses is now at 2,042.

Keeping an eye on these whales is really important for anyone watching the market because they have the power to make big waves. When they start buying or selling, it can often foreshadow big price moves. Plus, looking at how concentrated their holdings are gives us a sense of how Bitcoin wealth is distributed and how healthy the network is overall.

This recent dip in whale addresses could be a signal of short-term selling pressure. These big holders might be taking some profits off the table, or perhaps they are spreading their Bitcoin across different wallets for better security. Either way, this activity could be adding to the price volatility or pushing prices down in the short term.

Even with this recent dip, it’s worth remembering that 2,042 whales is still a historically high number compared to previous years. This suggests that big institutions and wealthy individuals are still very interested in Bitcoin as a long-term store of value. According to Tracy Jin, COO of MEXC:

“Looking at the bigger picture, the long-term trend is still firmly in place. Institutional demand and the growing Bitcoin infrastructure, like ETFs and new investment products, continue to strengthen its position. However, in the short run, we’re seeing pressure as the market works through excessive leverage and a decrease in risk appetite. While this might feel uncomfortable now, this phase of clearing out the excess and cooling down risk appetite is actually beneficial for Bitcoin’s long-term, healthy growth,” Jin told BeInCrypto.

Will Bitcoin Recover Levels Above $90,000?

Right now, Bitcoin is facing a significant hurdle at $85,985. If it can’t hold this level as support, we could see it slide further down towards the $82,000 range, continuing this current price correction.

Being so close to this key resistance level is making traders on edge, as everyone is carefully watching for clues about which way the market is going to break in this volatile period.

Even though the current setup of Bitcoin’s Exponential Moving Average (EMA) lines looks bearish – with short-term indicators below the long-term ones – there are some early signals of potential optimism peeking through.

“Despite the recent dip, Bitcoin’s long-term path still looks strong. Big players in the institutional world are continuing to increase their Bitcoin holdings, and the growth of Bitcoin infrastructure, including new ETFs and payment solutions, is only solidifying its position as the king of digital gold. In the short term, the price needs to climb back above $96,000-$100,000 to show that the market is ready for another growth spurt. If the selling pressure continues, we might see the market go into a deeper correction phase.”
Maria Carola, CEO of StealthEx.

The fact that short-term EMA lines are starting to trend upwards hints at a possible trend reversal coming soon. If this bullish crossover actually happens, Bitcoin’s price could get the momentum to challenge that resistance hanging around $93,000.

If Bitcoin can decisively break through that $93,000 level, it could then set its sights on the next important target of $96,375. A move like that could be a sign that the broader uptrend we’ve seen for much of Bitcoin’s recent journey might be getting back on track.