Bitcoin (BTC) is currently struggling to maintain its footing in a bearish market zone, trading below the crucial $67,000 mark. After briefly reaching an intraday high of around $67,600, BTC has seen a 0.7% decline in the past 24 hours, now trading at $66,500. The asset’s market capitalization teeters on the edge of $1.3 trillion. Despite this dip, Bitcoin’s daily trading volume has surged by 40%, reaching $22.2 billion.
This recent downturn coincides with a notable decline in whale activity. Data from Santiment indicates that the number of whale transactions, defined as those involving at least $100,000 worth of BTC, has dropped by 51% over the past five days. Transactions have decreased from 11,757 on May 15 to 5,756 at the time of reporting.
The BTC Relative Strength Index (RSI) has mirrored this decline, falling from 70 to 57 over the past five days. This drop suggests that Bitcoin has moved out of the overvalued zone, potentially setting the stage for a future price increase. The decreasing whale activity and RSI imply reduced price volatility for Bitcoin, the largest cryptocurrency by market cap.
Furthermore, Bitcoin’s Market Value to Realized Value (MVRV) ratio currently stands at 143% or 2.86x. This ratio, provided by Santiment, shows that the average price of all Bitcoins acquired until now has increased by 143% at the current price level. The MVRV ratio has declined from 146% over the past three days. Historically, Bitcoin holders tend to wait for a price surge before selling their assets when the MVRV ratio falls, indicating a cautious market sentiment.
In summary, Bitcoin is navigating a bearish market phase with reduced whale activity and declining RSI, signaling potential stability in the near term. However, the decreased MVRV ratio suggests that investors may be holding out for a price increase before offloading their holdings.
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