Bitcoin (BTC) has surged with bullish momentum, buoyed by a notable decrease in whale activity, even as market analysts foresee a potential downturn to the $52,000 mark.
At the time of reporting, BTC has seen a 3.5% increase in the past 24 hours, trading at $63,170, driving its market cap to $1.24 trillion, with a daily trading volume reaching $21.5 billion.
Santiment data reveals a consistent decline in whale transactions, defined as transactions involving at least $100,000 worth of BTC, over the past four days. These transactions have plummeted from 9,408 on May 9 to 4,974 unique transactions as of the latest update. This dip in whale activity, a phenomenon last observed in December 2018, may suggest that major players are biding their time, potentially anticipating a surge in prices.
Conversely, on-chain activity on the Bitcoin network has reached five-year lows, reminiscent of levels seen in 2019, according to recent reports.
Meanwhile, the Bitcoin Relative Strength Index (RSI), standing at 44 according to Santiment, indicates that the flagship cryptocurrency is slightly undervalued currently, potentially setting the stage for further price appreciation.
However, investor and analyst Michaël van de Poppe cautioned in an X post that Bitcoin is teetering at a “crucial level of support.” He warned that adverse news could precipitate a decline to the $60,000 threshold. Van de Poppe further posited that breaching the $60,000 zone might lead to a test between $52,000 and $55,000.
With these factors in consideration, BTC remains poised for potential price fluctuations, with market sentiment teetering on the balance between bullish momentum and cautious apprehension.
