Bitcoin (BTC) rebounded swiftly, showing bullish momentum just a day after plummeting to a one-month low of $61,500, attributed to escalating tensions between Iran and Israel.
In the past 24 hours, BTC surged by 3.2%, reaching approximately $66,450 at the time of reporting. The cryptocurrency’s market cap surpassed $1.3 trillion, while its daily trading volume dipped by 27%, settling at $43.5 billion.
The decline to $61,514 on April 14 marked a notable low point for the flagship digital currency, largely influenced by the onset of Iran’s drone attack on Israel.
Data provided by Santiment indicates a consistent decline in the BTC Relative Strength Index (RSI) since April 10, currently standing at 38. Despite recent bullish activity, the indicator suggests Bitcoin remains undervalued.
To sustain its bullish trajectory, Bitcoin’s RSI would need to maintain levels below the 50 mark.
Further analysis from Santiment reveals a 34% decrease in whale transactions involving at least $100,000 worth of BTC over the past three days, dropping from 13,004 transactions on April 12 to 8,562 unique transactions within the last 24 hours. Diminished trading volume and whale activity typically correlate with reduced price volatility.
Conversely, BTC’s one-year dormant circulation, as reported by Santiment, climbed from 3,975.15 to 4,954.98 coins per day. This suggests that some long-term Bitcoin holders may be considering selling their holdings for profit.
