Bitcoin (BTC) has been trading below $90,000 since March 7th and is struggling to recover its upward momentum amid changing market sentiment.
Meanwhile, technical indicators such as the Ichimoku Cloud and moving averages suggest that the trend is still downward, but a reversal cannot be ruled out.
Bitcoin Whales at 3-Month High
The number of Bitcoin whales holding over 1000 BTC has been steadily increasing in recent weeks. On March 22nd, there were 1,980 addresses, which has now increased to 1,991.
While the initial change of 11 may seem minor, it represents a significant increase in large-scale accumulation. This is the highest number of BTC whales recorded in over three months.
Tracking Bitcoin whales is important because these large holders have the power to influence price movements due to their position size. The increase in whale addresses may indicate rising confidence among institutional investors and high-net-worth individuals.
When more whales accumulate rather than distribute, it often suggests an upward sentiment and reduced selling pressure.
With whale numbers now at a multi-month high, this could mean key players are positioning themselves ahead of potential upward movements in Bitcoin price.
BTC Ichimoku Cloud Indicates Challenges
The Bitcoin Ichimoku chart shows the price consolidating just below the baseline (red line) after a strong downward movement.
The conversion line (blue line) remains below the baseline, indicating short-term downward momentum. Price movement is attempting to stabilize but has not yet shown a definitive trend change.
The lagging span (green line) being below both price and cloud reinforces a bearish outlook from a historical perspective.
The future cloud (Kumo) is bearish, with leading span A (green cloud boundary) positioned below leading span B (red cloud boundary), and the cloud itself predicting a downward movement.
This suggests resistance is above and upward momentum is limited unless the price decisively breaks through the cloud.
However, the thin structure of the current cloud implies potential vulnerability. If buyers intervene strongly, there could be a chance of reversal.
For now, the overall setup requires caution. According to Ichimoku principles, the current trend remains bearish.
Will Bitcoin Rebound to $88,000?
Bitcoin's moving averages continue to indicate a downward trend, with short-term moving averages positioned below long-term moving averages. This alignment suggests the current downward momentum is dominant.
However, if buyers can regain control and establish an upward trend, Bitcoin price could rise to the next major resistance level.
The first challenge is resistance near $85,124. Breaking this could open a path to $87,482, and potentially $88,839, if upward momentum strengthens and continues.
Conversely, if upward momentum is not established, the current downward structure will be reinforced.
In that case, Bitcoin might revisit the support level of $81,187.
A drop below this point would further confirm the downward trend, potentially driving the price down to $79,955.
