The price of Bitcoin (BTC) has been fluctuating below the crucial $67,000 mark after briefly reaching an intraday high of around $67,600.
BTC has dropped by 0.7% in the past 24 hours and is currently trading at $66,500. The asset’s market cap is hovering around $1.3 trillion. Despite the price dip, Bitcoin’s daily trading volume has surged by 40%, reaching $22.2 billion.
Decline in Whale Activity
The recent decline in Bitcoin’s price coincides with a decrease in activity among large-scale investors, known as whales. Data from Santiment shows that the number of whale transactions, each consisting of at least $100,000 worth of BTC, has dropped by 51% over the past five days, falling from 11,757 transactions on May 15 to 5,756 transactions per day currently.
RSI and Market Trends
Similarly, Bitcoin’s Relative Strength Index (RSI) has been declining along with the reduction in whale activity. According to Santiment, the Bitcoin RSI has decreased from 70 to 57 over the past five days. This decline indicates that Bitcoin has moved out of the overvalued zone, suggesting a potential price hike could be on the horizon.
At the current price level, the reduction in whale activity and RSI implies lower price volatility for Bitcoin, the largest cryptocurrency by market cap.
MVRV Ratio Insights
Santiment data also reveals that the Bitcoin Market Value to Realized Value (MVRV) ratio is currently at 143%, or 2.86x. This metric indicates that the average price of all Bitcoins acquired to date has increased by 143% at this price point. The MVRV ratio has slightly declined from 146% over the past three days. Historically, Bitcoin holders tend to wait for a price increase before selling their assets when the MVRV ratio falls.
Summary Review: Bitcoin remains in a bear zone with its price below the critical $67,000 mark. The decline in whale activity and the decreasing RSI suggest lower volatility, but also hint at the potential for a price increase. The MVRV ratio’s slight decline suggests that Bitcoin holders are waiting for a price surge before selling, indicating cautious optimism in the market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
