Key Points
- Bitcoin’s price has dropped below $64k, possibly due to whale actions and bearish market sentiment.
- Despite the drop, certain metrics suggest a potential price reversal might be on the horizon.
Bitcoin’s [BTC] price has experienced another dip, falling under $64k. This drop has led to concerns about a further decline. The price correction could be attributed to the actions of whales in the market.
Bearish Market Sentiment
In the past 24 hours, market bears have increased their activities, causing BTC’s price to decline. At the time of writing, BTC had dropped by over 2%, trading at $63,042 with a market capitalization exceeding $1.24 trillion. This decrease has also affected the cryptocurrency’s social metrics, with BTC’s weighted sentiment entering the negative zone, indicating the dominance of bearish sentiment.
According to an analysis by Phi Deltalytics, a notable surge in whale Bitcoin exchange inflows has been recorded. This increase makes up a significant part of overall exchange inflows, suggesting that whales are taking substantial profits during the 2024 Bitcoin bull run. Historical data shows that such surges in this metric have often been followed by price corrections.
Potential Price Reversal
With BTC’s price already in a bearish trend, further analysis was conducted to determine if a continued downtrend is likely. Data from CryptoQuant suggests that buying sentiment among U.S and Korean investors is weak, with Bitcoin’s Coinbase and Korea Premiums also in the red.
However, there are some positive signs. After peaking on 24 April, BTC’s exchange reserves have begun to decrease, indicating a decline in selling pressure. Furthermore, BTC’s Network To Value (NVT) ratio has seen a sharp decrease. This drop suggests that the cryptocurrency is undervalued and the likelihood of BTC’s price increasing is high.
BTC’s daily chart also indicates a potential uptrend. Both BTC’s Money Flow Index (MFI) and its Chaikin Money Flow (CMF) are above the neutral mark, suggesting a potential price increase. However, the Relative Strength Index (RSI) appears bearish, indicating potential further declines.
