Bitcoin Struggles Below Key Levels as Bearish Signals Mount Despite Whale Accumulation Uptick

Bitcoin Struggles Below Key Levels as Bearish Signals Mount Despite Whale Accumulation Uptick

Bitcoin (BTC) has declined by 6% over the past eight days following its recent all-time highs, with technical signals pointing to increased market uncertainty. While a modest rebound in whale activity suggests some large investors may be resuming accumulation, prevailing bearish indicators continue to weigh heavily on sentiment.

Whale Activity Shows Signs of Recovery

On-chain data reveals that the number of Bitcoin whales—wallets holding between 1,000 and 10,000 BTC—has inched up to 2,006 after dipping to 2,002 earlier this week. This minor rebound follows a more significant drop from 2,021 on May 25, highlighting a brief phase of distribution or profit-taking.

Whale movements are closely scrutinized by analysts due to their influence on liquidity and market dynamics. While a falling whale count typically signals risk-off behavior or a cooling trend, the recent stabilization could indicate renewed confidence among key market participants, easing fears of heavy selling pressure in the near term.

Technical Outlook Remains Bearish

Despite this uptick in whale activity, Bitcoin’s technical outlook remains tilted to the downside. The Ichimoku Cloud—a widely used momentum and trend indicator—paints a bearish picture. BTC is currently trading below the Kumo (cloud), which signals weakness in current momentum relative to historical trends.

Moreover, the Tenkan-sen (conversion line) remains below the Kijun-sen (base line), and both are sloping downward—clear indicators of short-term bearish momentum. The Chikou Span (lagging line) also sits below the price and the cloud, further confirming a lack of bullish momentum.

The projected future cloud narrows and remains red, suggesting either consolidation or continued downward pressure unless the price decisively breaks above resistance and flips the trend.

Death Cross Looms as Support Gets Tested

Bitcoin is also facing a potential death cross, with price action hovering just above a key support level at $104,584. A breakdown below this level could open the door to further losses, with downside targets at $102,135 and potentially $100,694 if bearish pressure intensifies.

Conversely, if bulls can regain control, a move above $106,726 would signal a return of positive momentum. A breakout at this level could drive BTC toward $110,728, with a possibility of retesting $112,000 should buying activity accelerate.

Conclusion

As Bitcoin hovers near critical levels, the market remains at a crossroads. While a slight recovery in whale holdings hints at potential accumulation, broader technical indicators continue to lean bearish. Traders will be closely watching whether support holds—or if a deeper correction is imminent.