Key Points
- Bitcoin (BTC) recovers after falling to a one-month low, with a current trading value of around $66,450.
- Despite the recovery, Bitcoin’s trading volume and whale activity have significantly decreased.
Bitcoin’s Market Performance
Bitcoin (BTC) experienced a surge in value, a day after it fell to a one-month low of $61,500. This drop was attributed to increased tensions between Iran and Israel.
At the time of this report, Bitcoin was up by 3.2% in the past 24 hours and was trading at around $66,450. The cryptocurrency’s market cap exceeded $1.3 trillion, despite a 27% plunge in daily Bitcoin trading volume, which currently stands at $43.5 billion.
Factors Influencing Bitcoin’s Value
On April 14, Bitcoin fell to a one-month low of $61,514, largely due to the commencement of Iran’s drone attacks on Israel.
Data from Santiment indicates that the Bitcoin Relative Strength Index (RSI) has been on a steady decline since April 10, currently at 38. This suggests that Bitcoin remains undervalued, despite its recent bullish trend. For Bitcoin to remain bullish, its RSI would need to stay below 50.
Furthermore, Santiment data reveals a 34% decrease in whale transactions (transactions worth at least $100,000 of BTC) over the past three days. The number of unique transactions dropped from 13,004 on April 12 to 8,562 in the last 24 hours. A decrease in trading volume and whale activity usually indicates lower price volatility for an asset.
On a different note, Bitcoin’s one-year dormant circulation increased from 3,975.15 to 4,954.98 coins per day, according to Santiment. This suggests that some long-term Bitcoin holders might be considering selling their assets for profit.
