Bitcoin (BTC) has experienced a surge in value as whale activity decreases, with analysts predicting a potential drop to $52,000.
Over the past 24 hours, BTC has seen a 3.5% increase, reaching a trading price of $63,170. The cryptocurrency’s market cap has also risen to $1.24 trillion, with a daily trading volume of $21.5 billion.
Data from Santiment reveals a decline in whale transactions involving at least $100,000 worth of BTC, dropping from 9,408 transactions on May 9 to 4,974 unique transactions currently.
This decrease in whale activity suggests that major players may be anticipating a price increase. Notably, Bitcoin whale activity has not been this low since December 2018.
Additionally, on-chain activity on the Bitcoin network hit a five-year low on May 12, reminiscent of levels last seen in 2019.
The Bitcoin Relative Strength Index (RSI) currently stands at 44, indicating that the cryptocurrency may be slightly undervalued. These factors suggest that BTC could potentially see further price gains.
However, veteran investor and analyst Michaël van de Poppe warns that Bitcoin is approaching a critical support level. He cautions that negative news could trigger a drop to $60,000, with a potential test between $52,000 and $55,000 if the cryptocurrency falls below that threshold.
In other news, the KITTY token has surged 8,000% following the return of GameStop investor Roaring Kitty.