Key Points
- Bitcoin (BTC) is experiencing a bullish trend despite a decrease in whale activity.
- An analyst predicts a potential drop to $52,000 if negative news emerges.
Bitcoin (BTC) has seen an increase in bullish momentum, despite a decrease in whale activity. An analyst, however, has suggested that a drop to the $52,000 mark could be imminent.
At the time of reporting, BTC had risen by 3.5% in the last 24 hours and was trading at $63,170. The market cap of the cryptocurrency had surged to $1.24 trillion, with a daily trading volume of $21.5 billion.
Declining Whale Activity
Data from Santiment reveals that whale transactions, which involve at least $100,000 worth of BTC, have been consistently declining over the past four days. The number of transactions fell from 9,408 on May 9 to 4,974 at the time of reporting.
This decrease in whale activity could suggest that larger investors are possibly waiting for a price surge. The level of Bitcoin whale activity has fallen to its lowest since December 2018.
A report on May 12 indicated that on-chain activity on the Bitcoin network had dropped to its lowest point in five years, a level last seen in 2019.
Potential Price Hike
The Bitcoin Relative Strength Index (RSI) is currently at 44, according to Santiment. This suggests that the leading cryptocurrency is slightly undervalued at the moment.
Given the current indicators, BTC could potentially see a further increase in price. Veteran investor and analyst Michaël van de Poppe, however, has said that Bitcoin is in “the crucial level of support” and that any negative news could trigger a fall to the $60,000 mark.
The analyst further stated that if the price drops below the $60,000 zone, it could potentially trigger “a test” between $52,000 and $55,000.
