Decrease in BTC whale engagement observed amidst highly avaricious market circumstances
Bitcoin Whales Decrease Activity as Market Remains Greedy
Recent data from Santiment reveals a decline in whale activity in the daily Bitcoin (BTC) transactions, coinciding with an overall greedy sentiment in the market.
The number of whale transactions involving at least $100,000 worth of BTC has dropped by 17.5% in the past 24 hours, going from 24,313 to 20,048 unique transactions per day.
This decrease in whale activity comes as the Bitcoin price experienced a slight 0.6% drop over the same period. As of now, the flagship cryptocurrency is trading at $66,750, with a market cap of $1.31 trillion.
In addition, Bitcoin’s 24-hour trading volume has plunged by 42%, currently standing at around $59 billion.
Market data from CoinMarketCap indicates that the market is still in a state of extreme greed, with the fear and greed indicator currently at 88. It is worth noting that Bitcoin reached a new all-time high of $69,170 on March 5 when the greed index was at 90.
Santiment data also reveals that Bitcoin’s total open interest (OI) has increased from $10.76 billion to $10.83 billion in the past 24 hours. However, the asset’s total funding rate has decreased from 0.08% to 0.04% during the same period.
This suggests that the increase in Bitcoin’s total OI may be due to short positions and a rise in trades betting on a price decline.
According to data from Coinglass, Bitcoin has faced over $80 million in liquidations in the past day, with $50.88 million in longs and $28.93 million in shorts.
Furthermore, Bitcoin’s Relative Strength Index (RSI) has risen from 73 to 76 in the past 24 hours. This indicates that the flagship cryptocurrency is currently in a highly volatile zone, and significant price fluctuations can be expected.
In order for Bitcoin to maintain a bullish trend, its RSI would need to cool down and drop below the 60 mark. An RSI below 50 would signify a decline in BTC’s price volatility.
