Bitcoin (BTC) reached a record high on December 17, but has since fallen below $100,000. Major indexes such as ADX, along with cautious whale activity, suggest a weakening downtrend.
As BTC approaches key resistance and support levels, its next moves could significantly influence price direction in the coming days.
BTC ADX Shows Weakening Downtrend
Currently, BTC’s ADX is at 18.81, down sharply from nearly 50 just seven days ago. This drop highlights a significant weakening in Bitcoin’s current downtrend.
ADX’s rapid decline suggests that the recent momentum driving BTC is fading, leaving the market in a state of bearish directional force.
The Average Directional Index (ADX) measures the strength of a trend, whether bullish or bearish, on a scale of 0 to 100. A value above 25 typically indicates a strong trend, while a reading below 20 indicates a weak or non-existent trend. With BTC’s ADX at 18.81, this low reading implies that the current downtrend may be losing momentum.
As a result, Bitcoin may enter a short-term consolidation period, characterized by reduced volatility and horizontal price movements.
Bitcoin Whales Start Accumulating Again
The number of Bitcoin addresses holding at least 1,000 BTC decreased sharply between December 16 and December 17, from 2,108 to 2,061. This drop highlights a notable sell-off or redistribution among major investors.
The figure then stabilized until December 24, when it fell further to 2,049. Such changes in whale activity can have a significant impact on Bitcoin, as these addresses often represent entities that have a large influence on price movements thanks to their large transaction capacity.
Tracking these Bitcoin whales is important because their buying and selling behavior often serves as a leading indicator of broader market trends. When whales accumulate, it shows confidence in Bitcoin’s upside potential, while large-scale selling could indicate caution or profit-taking, posing the risk of a market decline.
After the whale population plummeted, the index began to increase slightly, with the current figure at 2,056. This increase, while not occurring at a high pace, indicates a cautious return of confidence among large holders. This gradual accumulation could indicate stability in the Bitcoin price in the short term.
BTC Price Prediction: Can $100,000 Return?
Bitcoin price is currently approaching a key resistance level at $94,200. If this level breaks, it could open the door for the upside momentum to continue, with potential tests at $98,700 and then $102,500 if the uptrend strengthens.
Despite the bullish potential, BTC’s EMA still points to a bearish pattern, with the short-term EMA below the long-term EMA.
This configuration reflects the remaining bearish sentiment in the market. If the downtrend regains strength, BTC could retest the support at $90,700. If this support fails to hold, the next downside target could be $88,089.