Bitcoin (BTC) has shown bullish momentum despite a decline in whale activity, leading one analyst to predict a possible downturn to the $52,000 level.
Bullish Momentum: BTC has experienced a 3.5% increase in the past 24 hours, reaching $63,170, with its market cap rising to $1.24 trillion and a daily trading volume of $21.5 billion.
Declining Whale Activity: Data from Santiment indicates a consistent decrease in whale transactions involving at least $100,000 worth of BTC over the past four days. Transactions have fallen from 9,408 on May 9 to 4,974 at the current reporting time. This decline suggests that major players may be awaiting a potential price surge. Notably, whale activity has dropped to its lowest level since December 2018.
On-chain Activity: A report on May 12 highlighted that on-chain activity on the Bitcoin network has plunged to its lowest levels in five years, last observed in 2019.
Relative Strength Index (RSI): The Bitcoin RSI currently stands at 44, indicating that the cryptocurrency is slightly undervalued. This, coupled with declining whale activity, could suggest the potential for further price appreciation.
Analyst’s Perspective: Michaël van de Poppe, a veteran investor and analyst, suggests that Bitcoin is at a crucial support level. However, he warns that negative news could trigger a downturn to the $60,000 level. If BTC falls below this threshold, van de Poppe predicts a potential test of support between $52,000 and $55,000.
Conclusion: Despite the recent bullish momentum, declining whale activity and potential negative news could lead to a downturn in Bitcoin’s price. Analysts are closely monitoring key support levels, with the $52,000 mark seen as a critical area of interest in the event of a further decline.
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