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Bitcoin wanders into bearish zone, whales take a step back
Bitcoin (Bitcoin) the price hovered below the crucial $67,000 level after briefly touching an intraday high of around $67,600.
BTC has declined by 0.7% in the past 24 hours and is trading at $66,500 at the time of writing. The asset’s market capitalization is on the brink of the $1.3 trillion mark. Bitcoin is everyday trading volumehowever, it increased 40% to $22.2 billion.
BTC Price, Whale Activity, RSI and MVRV Report – May 20 | Source: Santimento
Furthermore, the collapse in BTC price comes against the backdrop of declining whale activity. According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 in BTC has decreased by 51% over the past five days, from 11,757 transactions on May 15 to 5,756 unique transactions per day at the time of reporting.
Likewise, BTC’s Relative Strength Index (RSI) is also steadily declining, along with whale activity. According to the market intelligence platform, Bitcoin’s RSI has dropped from 70 to 57 over the past five days.
The indicator shows that Bitcoin has fallen from the overvalued zone and a potential price increase could be expected.
At this price, the decline in whale activity and the RSI would also mean less price volatility for the largest cryptocurrency by market capitalization.
According to Santiment data, BTC’s market value to realized value (MVRV) ratio stands at 143%, or 2.86x, at the time of reporting. The key indicator shows that the average price of all Bitcoins purchased so far has increased by 143% at this price.
Furthermore, BTC’s MVRV ratio has dropped by 146% over the past three days. Historically, Bitcoin holders usually wait for a price increase before attempting to sell their assets when the MVRV ratio declines.