Bitcoin (BTC) has experienced significant downward pressure recently, with its price falling 11% in just one week. The cryptocurrency has dropped below the critical $90,000 level for the first time since November 2024, currently trading around $85,985. As the market remains volatile, technical indicators suggest that Bitcoin is navigating through a crucial support zone, with the potential for further declines unless buying pressure resurfaces.

Bearish Signals from Ichimoku Cloud

Bitcoin’s technical outlook is showing predominantly bearish signs, particularly when viewed through the lens of the Ichimoku Cloud indicator. The red cloud (Kumo), which represents a resistance zone, is currently positioned above Bitcoin’s price action, signaling that the cryptocurrency is facing strong overhead resistance. Moreover, the cloud is widening slightly, further confirming that bearish momentum is building.

In addition, the Leading Span A (green line) is positioned below the Leading Span B (red line), reinforcing the negative outlook. Bitcoin is also trading below both the Tenkan-sen (conversion line) and Kijun-sen (baseline), which are crucial components of the Ichimoku Cloud. These lines typically indicate short-term trends, and their alignment suggests that Bitcoin is still under significant downward pressure.

The flattening of the Tenkan-sen, which is typically seen as a sign of consolidation or a pause in a downtrend, provides a slight glimmer of hope. However, the failure of the Tenkan-sen to cross above the Kijun-sen signals that the downtrend is likely to continue unless Bitcoin can break through key resistance levels.

Declining Bitcoin Whale Activity

Another notable development contributing to the bearish sentiment is the decline in Bitcoin whale activity. Whale addresses, defined as those holding at least 1,000 BTC, had steadily increased until reaching a peak of 2,054 addresses on February 22. However, in the last few days, this figure has dropped to 2,042 addresses, signaling a possible decrease in the accumulation of Bitcoin by large holders.

Whale behavior is often a key indicator of future price movements, as these addresses have the power to move the market. The recent reduction in whale addresses may indicate that some large holders are taking profits or redistributing their holdings, adding to the downward pressure on Bitcoin’s price.

However, despite the recent decline in whale addresses, the current number of Bitcoin whales remains historically high. This suggests continued strong institutional interest and support for Bitcoin as a store of value, even though short-term selling pressure could persist.

Bitcoin’s Critical Support and Resistance Levels

Bitcoin’s price is currently testing critical support at $85,985. If the price fails to hold this level, the next significant support zone lies around $82,000, which could lead to further price declines. On the other hand, if Bitcoin can hold above this support level, it may be able to recover and target resistance at $93,000.

Traders are closely monitoring this crucial support zone, as any break below could trigger further selling. Conversely, if Bitcoin can reclaim its position above the $90,000 mark, it could initiate a rebound, setting the stage for a potential recovery.

Institutional Support Remains Strong

Despite the current bearish trend, institutional interest in Bitcoin remains strong. With growing adoption of Bitcoin ETFs and increased infrastructure development, many analysts believe that the cryptocurrency’s long-term outlook remains positive. Institutional players are continuing to accumulate Bitcoin, which strengthens its status as a store of value.

In the short term, Bitcoin’s price needs to regain momentum and push above the $96,000–$100,000 range to signal a broader market recovery. Until then, Bitcoin remains at a crossroads, with its next move dependent on broader market conditions and investor sentiment.