The price of Bitcoin (BTC) has decreased by 6% over the past eight days after reaching its all-time highs, and recent technical indicators suggest an increase in market uncertainty. Bitcoin whale activity, which declined briefly, is recovering, indicating that some large Bitcoin holders may be returning to accumulate funds.
However, bearish indicators are increasing, as the Ichimoku cloud shows weakness, and Bitcoin is trading below key support levels. As the price approaches $104,584, the risk of a new bearish crossover and deeper decline remains unless bulls regain momentum above the resistance level.
● The number of Bitcoin whales is recovering after a sharp decline
The number of Bitcoin whales - addresses holding between 1,000 and 10,000 Bitcoin - has slightly increased to 2,006 after dropping to 2,002 earlier this week.
This short decline followed a sharp drop from 2,021 on May 25, marking a significant short-term drop in the number of large holders. However, this recovery indicates that some whales may return to accumulation.
Although volatility has been mild, these changes are under close observation, as they often precede shifts in market sentiment or price movement.
Monitoring whale behavior is crucial due to their significant impact on Bitcoin's liquidity and volatility. A decrease in the number of whales can indicate profit-taking or distribution, often suggesting caution or a potential market slowdown.
Conversely, stability or an increase - as is the case now - can calm investor fears and support price resilience at high levels.
The recovery of large holders after a sharp decline may indicate renewed confidence among key players, reducing the immediate risk of large selling pressures and helping Bitcoin maintain its current range.
● Technical indicators are trending downward as Bitcoin struggles below its key levels
The Ichimoku cloud chart for Bitcoin shows a short-term bearish structure.
The price is currently moving below the Kumo cloud, shaded in green and red, indicating that Bitcoin is trading in a weak area compared to historical and expected momentum.
The upcoming cloud is red, indicating that the market trend in the near future remains bearish unless the reversal breaks the upper limit.
The Tenkan-sen line (the blue line) is below the Kijun-sen line (the red line), confirming short-term bearish momentum. Both lines are sloping downward, which is another bearish signal.
The Chikou line (the delayed green line) is below both the price and the cloud, confirming that the current momentum lacks bullish confirmation.
The future cloud is also narrowing, which may indicate a potential balance or upcoming consolidation area. Currently, the Ichimoku components align with bearish expectations. A bullish shift requires the price to break above the cloud and flip the future Kumo indicator from red to green.
● Bitcoin faces a potential death cross
The price of Bitcoin recently formed a death cross, and technical indicators suggest another death cross may be on the horizon. The price is currently trading above the critical support level at $104,584, which has served as a short-term floor.
If this support fails, the next bearish targets are at $102,135 and possibly down to $100,694 if selling pressure intensifies.
The presence of consecutive death crosses, along with weak price action near these levels, increases the likelihood of a deeper correction in the near term.
On the upside, if Bitcoin can recover and build strong momentum, it may retest the resistance level at $106,726.
Breaking this level could lead to a sharp move towards $110,728, with additional upside potential to reach $112,000 if the rally accelerates.