Bitcoin: Decrease in RSI and Diminished Whale Activity May Signal an Upcoming Price Increase

Bitcoin is currently hovering below the critical $67,000 level, having briefly touched an intraday high of around $67,600. Over the past 24 hours, BTC declined by 0.7% and is currently trading at $66,500. The cryptocurrency’s market cap is teetering on the edge of $1.3 trillion. Despite this, Bitcoin’s daily trading volume has surged by 40%, reaching $22.2 billion. Simultaneously, the BTC Relative Strength Index (RSI) has consistently decreased, dropping from 70 to 57 over the past five days.

This decline in RSI suggests that Bitcoin has moved away from being overvalued, potentially signaling an upcoming price increase. Furthermore, the decreasing whale activity and RSI could lead to reduced price volatility for the largest cryptocurrency by market capitalization.

According to Santiment data, the BTC Market Value to Realized Value (MVRV) ratio currently stands at 143% (equivalent to 2.86x). This key indicator indicates that the average price of all Bitcoins acquired thus far has risen by 143% at the current price level. Additionally, the BTC MVRV ratio has decreased from 146% in the past three days. Historically, Bitcoin holders tend to wait for a price surge before selling their assets when the MVRV ratio declines.

Sentiment: Positive