Bitcoin, the world's largest cryptocurrency by market capitalization, is currently navigating a critical juncture, according to respected trader Josh Olszewicz. Olszewicz emphasizes that Bitcoin is in a "do or die" situation, with its future trajectory hanging in the balance.

The trader's assessment is rooted in the Ichimoku Cloud indicator, a popular technical analysis tool. The indicator's cloud component, which can signal potential support and resistance levels, is currently green, indicating an uptrend. However, Bitcoin is now nearing the lower boundary of this cloud. A rebound from this level is crucial to sustain its bullish momentum. Should Bitcoin fail to hold this support and break down below the cloud, a significant correction could ensue.

It's important to note that traders often use multiple indicators to confirm trend reversals. Among these is the Relative Strength Index (RSI), which helps in identifying overbought or oversold conditions in the market. As of now, Bitcoin is trading at $64,450 on the Bitstamp exchange, having dropped by 3.5% in the last 24 hours.

The market's fragility is further underscored by recent activity from major holders. According to CryptoQuant CEO Ki Young Ju, long-term holder whales have liquidated approximately $1.2 billion worth of Bitcoin through brokers over the past week. This sell-off, combined with $460 million in ETF outflows, has resulted in $1.6 billion in sell-side liquidity. Ju warns that brokers might soon deposit this Bitcoin onto exchanges, increasing selling pressure and potentially exacerbating the market's decline.

Several factors contribute to Bitcoin's recent underperformance. Analytics firm IntoTheBlock reports a significant drop in the number of new Bitcoin users, reaching a multi-year low. This trend suggests that Bitcoin may be evolving into a "whale-only" asset, losing its broader appeal. Echoing this sentiment, Jurrien Timmer, director of global macro at Fidelity Investments, recently highlighted the deceleration in Bitcoin's network growth.

As Bitcoin grapples with these challenges, the coming days will be critical in determining whether it can recover its upward momentum or succumb to further decline.