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

Bitcoin (BTC) price has been on a downward momentum over the past week with the asset falling below the psychological $60,000 mark amid heightened whale activity.

BTC declined by 8% in the past 24 hours and is trading at around $56,990 at the time of writing — a level last seen in late February. Following the downtrend, Bitcoin’s market cap dropped below the $1.13 trillion mark. However, the asset’s daily trading volume increased by 70%, surpassing the $45 billion zone.

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

According to data provided by Santiment, the number of whale transactions consisting of 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, the amount of Bitcoin supply sitting in exchange increased from 811,810 BTC to 821,740 BTC over the past 24 hours, per Santiment data.

This movement could potentially show that some Bitcoin holders might be looking to sell their assets due to the FUD (fear, uncertainty and doubt) roaming in the crypto market. 

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

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

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