Declining whale activity hints at Bitcoin reaching $52k, says Analyst
Bitcoin (BTC) has experienced a surge in value as whale activity declines, but one analyst warns that a drop to $52,000 is possible.
At the time of writing, BTC is up by 3.5% in the past 24 hours and is currently trading at $63,170. The cryptocurrency’s market cap has also increased to $1.24 trillion, with a daily trading volume of $21.5 billion.
Data from Santiment reveals that whale transactions involving at least $100,000 worth of BTC have been consistently decreasing over the past four days. The number of transactions has fallen from 9,408 on May 9 to 4,974 at the present time. This decline in whale activity suggests that major players may be waiting for a price surge. Interestingly, this is the first time since December 2018 that Bitcoin whale activity has dropped to this level.
A recent report states that on-chain activity on the Bitcoin network has reached its lowest level in five years, a level last seen in 2019.
Meanwhile, Santiment reports that the Bitcoin Relative Strength Index (RSI) is currently at 44, indicating that the flagship cryptocurrency is slightly undervalued.
Given these recent indicators, there is a possibility of further price increases for BTC. However, veteran investor and analyst Michaël van de Poppe warns that Bitcoin is currently at a crucial support level. He suggests that negative news could cause a drop to the $60,000 mark, and going below that could potentially lead to a “test” between $52,000 and $55,000.
In related news, the KITTY token has surged by 8,000% following the comeback of GameStop investor Roaring Kitty.
