Bitcoin falls below $57k for the first time in two months

Bitcoin (BTC) price gained bearish momentum last week as the asset fell below the psychological $60,000 level due to increased whale activity.

BTC is down 8% in the last 24 hours and is trading around $56,990 at the time of writing; This level was last seen in late February. Following the downtrend, Bitcoin’s market value fell below $1.13 trillion. However, the asset’s daily trading volume increased by 70%, surpassing the $45 billion region.

BTC price, whale activity, RSI and supply on exchanges – May 1 | Source: Santiment

According to data provided by Santiment, the number of whale transactions involving at least $100,000 worth of BTC has increased by 60% since April 28, rising from 7,973 to 12,735 unique daily transactions at the time of reporting.

Moreover, according to Santiment data, the amount of Bitcoin supply pending in the exchange increased from 811,810 BTC to 821,740 BTC in the last 24 hours.

This move could potentially indicate that some Bitcoin holders may want to sell their holdings due to FUD (fear, uncertainty and doubt) in the crypto market.

On April 30, BitMEX’s report claimed that an unknown entity controls 47% of the global Bitcoin mining hashrate. This poses strong centralization risks for the largest blockchain network.

On the other hand, according to Santiment, the BTC Relative Strength Index (RSI) dropped from 52 to 40. The indicator shows that Bitcoin is undervalued at this price point and increased whale activity could potentially bring higher price volatility to the asset.