The price of Bitcoin (BTC) has been hovering below the critical $67,000 mark after briefly reaching an intraday high of approximately $67,600.
Over the past 24 hours, BTC has experienced a 0.7% decline and is currently trading at $66,500. The cryptocurrency’s market cap is teetering at around $1.3 trillion. Despite this, Bitcoin’s daily trading volume has surged by 40%, reaching $22.2 billion.
The recent drop in BTC price coincides with a decrease in whale activity. Data from Santiment reveals that the number of whale transactions involving at least $100,000 worth of BTC has fallen by 51% in the last five days, dropping from 11,757 transactions on May 15 to 5,756 daily transactions.
Similarly, the Relative Strength Index (RSI) for BTC has been on a downward trend, declining from 70 to 57 over the same five-day period. This suggests that Bitcoin has moved out of the overvalued territory, potentially paving the way for a price increase.
With declining whale activity and RSI, the largest cryptocurrency by market cap could see reduced price volatility at its current price level.
As of now, the Market Value to Realized Value (MVRV) ratio for BTC stands at 143%, or 2.86x. This indicator indicates that the average price of all Bitcoins acquired to date has increased by 143% at the current price point.
Furthermore, the BTC MVRV ratio has dropped from 146% over the last three days. Typically, Bitcoin holders tend to hold off on selling their assets until a price surge occurs when the MVRV ratio decreases.
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