Bitcoin meanders in bear territory as whales retreat
Bitcoin (BTC) is currently trading below the important $67,000 level, having briefly reached a high of around $67,600 earlier. Over the past 24 hours, BTC has declined by 0.7% and is currently trading at $66,500. Its market capitalization is close to $1.3 trillion. However, the daily trading volume of Bitcoin has increased by 40% to reach $22.2 billion.
This decline in the price of BTC coincides with a decrease in whale activity. Data from Santiment shows that the number of whale transactions involving at least $100,000 worth of BTC has dropped by 51% in the past five days, going from 11,757 transactions on May 15 to 5,756 transactions per day currently.
The Relative Strength Index (RSI) of Bitcoin has also been consistently declining along with the decrease in whale activity. The RSI has fallen from 70 to 57 over the past five days. This suggests that Bitcoin has moved out of the overvalued zone, potentially indicating a price increase in the future.
The declining whale activity and RSI at this price level could result in lower price volatility for Bitcoin, which is the largest cryptocurrency by market capitalization.
The Market Value to Realized Value (MVRV) ratio of BTC is currently at 143%, or 2.86x. This ratio indicates that the average price of all Bitcoins acquired up 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.
In summary, BTC is currently trading below the $67,000 level, with a decrease in whale activity and RSI. However, the MVRV ratio suggests that the average price of Bitcoins acquired until now has increased. Investors will be watching these indicators closely for potential price movements.
