Key Points
- Bitcoin’s price has been on a downward trend, dropping below the $60,000 mark.
- The decline in Bitcoin whale activity and trading volume suggests potential for lower price volatility and a price rebound.
The price of Bitcoin has been experiencing a steady decline over the past few days. This comes as the wider cryptocurrency market faces a correction period.
On July 29, Bitcoin reached a local high of nearly $70,000, but it has been on a downward trajectory since then, even falling below the $60,000 level.
Bitcoin’s Current Market Status
At the time of writing, Bitcoin has depreciated by 1.55% in the last 24 hours and is trading at $60,532.45. The market capitalization of the asset stands at $1.19 trillion. Furthermore, Bitcoin’s daily trading volume has dipped by 36%, standing at $27.4 billion.
Data from Santiment shows that the Bitcoin Relative Strength Index (RSI) fell from 66 on July 29 to 38. This indicates that Bitcoin is oversold at this price level, suggesting a potential for a price increase.
Bitcoin’s MVRV Ratio and Whale Activity
The market intelligence platform’s data reveals that the Bitcoin Market Value to Realized Value (MVRV) ratio is at negative 0.94%. This means that short-term holders are currently at a loss. Historically, mild rebounds in the price of Bitcoin have been observed when the MVRV ratio slightly falls below zero.
According to Santiment, the total supply of Bitcoin in profit fell from 18.96 million on July 29 to 16.19 million coins. It’s worth noting that there are currently 19.73 million Bitcoin tokens in circulation.
The activity of Bitcoin whales has also been on the decline since the beginning of the month. Data from Santiment shows that the number of whale transactions, each worth at least $100,000 in Bitcoin, decreased from 10,353 on August 1 to 8,349 unique transactions in the last 24 hours.
The decrease in Bitcoin whale activity and trading volume could indicate a potential drop in price volatility and even a price rebound due to the low levels of RSI and MVRV ratio.
