Despite reaching $66k, Bitcoin remains undervalued.
Bitcoin (BTC) experienced a surge in value after hitting a one-month low of $61,500 due to rising tensions between Iran and Israel. As of now, BTC has increased by 3.2% in the past 24 hours and is currently trading at around $66,450. The cryptocurrency’s market cap has exceeded $1.3 trillion, but its daily trading volume has dropped by 27% and currently stands at $43.5 billion.
On April 14, BTC reached its lowest point in a month, dropping to $61,514. This decline can be attributed to the start of Iran’s drone attack on Israel. Santiment data reveals that the BTC Relative Strength Index (RSI) has been consistently decreasing since April 10 and currently sits at 38. Despite the recent bullish momentum, the RSI indicates that Bitcoin is still undervalued.
For Bitcoin to maintain its bullish status, the RSI must remain below the 50 mark. Additionally, Santiment data shows a 34% decrease in whale transactions worth at least $100,000 in the past three days. This decline translates to a drop from 13,004 transactions on April 12 to 8,562 unique transactions in the last 24 hours. Reduced trading volume and whale activity typically lead to lower price volatility for an asset.
Conversely, Santiment’s data reveals that BTC’s one-year dormant circulation has increased from 3,975.15 to 4,954.98 coins per day. This suggests that long-term Bitcoin holders may be considering selling their assets for profit.
In conclusion, Bitcoin’s recent surge in value following its dip can be attributed to the geopolitical tensions between Iran and Israel. The cryptocurrency’s RSI, whale activity, and dormant circulation all provide insights into its current state and future prospects.
