Bitcoin Drops Below $90K, Whales Sell Amidst Bearish Signals

Bitcoin (BTC) has experienced a significant decline in price over the past week, dropping below the $90,000 mark for the first time since November 2024. The cryptocurrency has lost 11% of its value in the last seven days and is currently trading near a critical resistance level of $85,985.

Technical indicators suggest a predominantly bearish outlook for Bitcoin. The red cloud on the Ichimoku Cloud chart is positioned above the current price action and is widening slightly, indicating increasing bearish momentum. Despite this short-term weakness, some analysts point to potential signs of recovery as short-term EMA lines begin to trend upward.

The number of Bitcoin whales, defined as addresses holding at least 1,000 BTC, has demonstrated steady growth until reaching a peak of 2,054 on February 22. Since that high point, however, the metric has begun to decline, with the current count standing at 2,042 whale addresses. Tracking these large holders is crucial for market participants, as whales possess significant market-moving power. Their accumulation or distribution patterns often precede major price movements, and their concentration levels provide insight into Bitcoin’s wealth distribution and overall network health.

The recent decline in whale addresses could signal short-term selling pressure, as these large holders may be taking profits or redistributing their holdings across multiple wallets for security purposes, potentially contributing to price volatility or downward pressure in the near term. Despite this recent decrease, it’s important to note that the current whale count of 2,042 remains historically elevated compared to previous years, suggesting continued strong institutional and high-net-worth individual interest in Bitcoin as a long-term store of value.

Bitcoin currently has a significant resistance level at $85,985. A failure to maintain this support could trigger a downward movement toward the $82,000 range, continuing the current correction. The proximity to this resistance level has created heightened tension among traders who are carefully watching for signs of direction in this volatile market.

Despite the current bearish configuration of Bitcoin’s Exponential Moving Average (EMA) lines, with short-term indicators positioned below their long-term counterparts, there are emerging signs of potential optimism. The upward trajectory of the short-term EMA lines suggests a possible trend reversal in the near future. If this bullish crossover materializes