Bitcoin (BTC) has fallen 6% over the past eight days after reaching new all-time highs, and recent technical signals indicate increasing uncertainty in the market. Whale activity, which temporarily decreased, has begun to recover, hinting that some large holders may be returning to accumulation.
However, bear indicators are rising as the Ichimoku Cloud shows weakness, and BTC is trading below key support levels. As the price fluctuates slightly above $104,584, the threat of another 'death cross' and deeper declines remains if the bulls cannot regain momentum above resistance.
The number of Bitcoin whales is recovering after a significant decline.
The number of Bitcoin whales—addresses holding between 1,000 to 10,000 BTC—has slightly recovered to 2,006 after dropping to 2,002 earlier this week.
This short-term decline occurred after a sharper drop from 2,021 on May 25, marking a notable short-term decrease in large holders. However, the recovery suggests that some whales may be returning to accumulation.
Although the fluctuations have been minor, such changes are closely monitored as they often precede shifts in market sentiment or price dynamics. Monitoring whale behavior is important due to their significant impact on the liquidity and volatility of Bitcoin. A decrease in the number of whales may indicate profit-taking or distribution, which often signals caution or potential market cooling.
Conversely, stabilization or growth—like what is being observed now—may reduce investors' concerns and support price resilience at high levels.
The recovery in the number of large holders after a sharp decline may indicate a restoration of confidence among key players, reducing the immediate risk of significant selling pressure and helping Bitcoin maintain its current range.
Technical indicators are taking on a bearish character as Bitcoin struggles below key levels.
The Ichimoku Cloud chart for Bitcoin shows a short-term bearish structure.
The price dynamics are currently positioned below Kumo (the cloud), which is colored green and red, indicating that Bitcoin is trading in a zone of weakness relative to historical and projected momentum.
The cloud ahead is red, indicating that the trend for the near future remains bearish unless a reversal breaks the upper boundary. Tenkan-sen (blue line) is below Kijun-sen (red line), confirming the short-term downward momentum. Both lines are sloping down, which is another bearish signal.
Chikou Span (green lagging line) is below both price and the cloud, reinforcing the lack of bullish confirmation for the current momentum.
The future cloud is also narrowing, which may hint at a potential equilibrium or consolidation zone ahead. Currently, the Ichimoku components align with a bearish forecast. A bullish shift would require a price breakout above the cloud and a change in the future Kumo from red to green.
Bitcoin faces a potential death cross.
The price of Bitcoin recently formed a 'death cross', and technical indicators suggest the possibility of another one on the horizon. The price is currently trading slightly above critical support at $104,584, which has acted as a short-term floor.
If this support does not hold, the next targets for decline are at $102,135 and potentially down to $100,694 if selling pressure intensifies. The presence of consecutive 'death crosses', combined with weakening price dynamics near these levels, increases the likelihood of a deeper correction in the short term.
On the other hand, if Bitcoin can recover and establish strong momentum, it may retest resistance at $106,726.
A breakout above this level could trigger a sharper move to $110,728, with further potential to reach $112,000 if the rally accelerates.#BinanceSquare #Write2Earn #TradingTypes101 #BinanceAlphaAlert #crypto $BTC