Bitcoin is wandering in the bear zone, whales take a step back

Bitcoin (BTC) price is trading below the critical $67,000 level after briefly touching an intraday high of $67,600.

BTC is down 0.7% in the last 24 hours and is trading at $66,500 at the time of writing. The asset’s market value stands on the edge of a $1.3 trillion cliff. However, Bitcoin’s daily transaction volume increased by 40%, reaching $22.2 billion.

BTC price, whale activity, RSI and MVRV rate – May 20 | Source: Santiment

Moreover, the decline in BTC price occurred during a period of reduced whale activity. According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 worth of BTC has dropped 51% over the past five days; It dropped from 11,757 transactions on May 15 to 5,756 unique transactions per day during the reporting period.

Quite similarly, the BTC Relative Strength Index (RSI) has also been steadily falling along with the asset’s whale activity. According to the market intelligence platform, Bitcoin RSI has fallen from 70 to 57 in the last five days.

The indicator shows that Bitcoin has fallen from the overvalued zone and a potential price increase can be expected.

At this price point, decreasing whale activity and RSI could also mean lower price volatility for the largest cryptocurrency by market cap.

According to Santiment’s data, the BTC Market Value to Realized Value (MVRV) ratio stands at 143% or 2.86x during the reporting period. The key indicator shows that the average price of all Bitcoins purchased so far is up 143% at this price point.

Additionally, the BTC MVRV rate has dropped from 146% in the last three days. Historically, Bitcoin holders often wait for a price increase before attempting to sell their holdings when the MVRV rate drops.