Bitcoin is still undervalued despite surge to $66k

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The price of Bitcoin (BTC) picked up steam the day after dipping to a one-month low of $61,500, spurred by escalating tensions between Iran and Israel.

Bitcoin has increased by 3.2% over the past 24 hours and is priced approximately at $66,450 as of now. The market value of this cryptocurrency has exceeded $1.3 trillion, while the Bitcoin trading volume saw a significant drop of 27%, currently standing at roughly $43.5 billion.

April 14 saw a drop in the leading digital currency to a one-month low of $61,514. This decline was partly driven by the initiation of Iran’s drone strikes against Israel.

Based on information from Santiment, Bitcoin’s Relative Strength Index (RSI), which measures the cryptocurrency’s price momentum, has been decreasing since April 10 and now stands at 38. This indicates that Bitcoin may still be underpriced, despite recent signs of a bullish trend.

Bitcoin’s RSI would need to stay below the 50 mark to remain bullish.

Additionally, according to Santiment’s data, there was a 34% decrease in the number of whale-sized Bitcoin transactions worth over $100,000. These transactions dropped from 13,004 recorded on April 12 to only 8,562 unique transactions within the last 24 hours.

Decreasing trading volume and whale activity usually means lower price volatility for an asset.

Instead of this: On the other hand, the number of dormant Bitcoins circulating after a year increased from 3,975.15 to 4,954.98 coins per day, as reported by Santiment. This could potentially indicate that some long-term Bitcoin holders may be considering selling their coins for a profit.

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2024-04-15 11:22