Bitcoin (BTC) has seen a significant drop in value in the past week, dipping below $90,000 for the first time since November 2024. Currently trading near a critical resistance level of $85,985, it marks an 11% decrease in the last seven days.
Technical indicators are sending bearish signals, with the red cloud situated above the current price action, suggesting increased bearish momentum. However, some analysts are optimistic, noting potential signs of recovery as short-term EMA lines show upward trends.
The Ichimoku Cloud for Bitcoin presents a bearish setup, with the red cloud signaling a resistance zone that BTC needs to breakthrough. The widening cloud indicates growing bearish momentum. The Leading Span A is beneath the Leading Span B, further confirming a bearish outlook, while the price remains below both the Tenkan-sen and Kijun-sen lines, indicating downward pressure.
Recent data reveals a decrease in the number of Bitcoin whale addresses (holding at least 1,000 BTC) from a peak of 2,054 to 2,042. While this decline may signal short-term selling pressure, the overall interest from institutional and high-net-worth individuals remains strong, suggesting ongoing belief in Bitcoin as a long-term asset.
Tracy Jin, COO of MEXC, emphasizes the continued strength of institutional interest in Bitcoin despite short-term market pressures. The market sentiment remains optimistic for long-term growth, contingent on Bitcoin’s ability to reclaim levels above $85,985.
According to Maria Carola, CEO of StealthEx, while the short-term outlook may be bearish, the long-term trajectory for Bitcoin remains robust. Institutional players are increasing their Bitcoin positions, and the development of new infrastructure supports its status as digital gold. Recovering above $96,000 - $100,000 could indicate a bullish trend shift, with potential resistance levels at $93,000 and $96,375.
As traders closely monitor Bitcoin's price movements, the possibility of a trend reversal and upside potential remains on the horizon, signaling a potential opportunity for bullish momentum.