The Daily Bitcoin Whale Activity Declines Amidst Greedy Sentiment
The number of whale transactions consisting of at least $100,000 worth of Bitcoin (BTC) has declined by 17.5% in the past 24 hours, according to data provided by Santiment. This decrease is reflected in the drop from 24,313 to 20,048 unique transactions per day.
At the same time, the Bitcoin price recorded a 0.6% drop over the past 24 hours and is currently trading at $66,750 with a market cap of $1.31 trillion. Additionally, Bitcoin’s trading volume in the last 24 hours has plunged by 42%, hovering around $59 billion.
Despite these fluctuations, the market remains in a state of extreme greed, as indicated by the fear and greed index standing at 88. It is worth noting that Bitcoin reached a new all-time high of $69,170 on March 5 when the greed index was at 90.
Total Open Interest Increases while Funding Rate Declines
Santiment reports that Bitcoin’s total open interest (OI) has increased from $10.76 billion to $10.83 billion in the past 24 hours. However, the asset’s total funding rate has declined from 0.08% to 0.04% during the same period.
This data suggests that there may be an increase in short positions and trades betting on a price decline for Bitcoin.
In addition, Coinglass data reveals that Bitcoin experienced over $80 million in liquidations within the past day. Of this amount, $50.88 million came from long positions and $28.93 million from shorts.
Furthermore, Bitcoin’s Relative Strength Index (RSI) has risen from 73 to 76 over the past day. This indicates that the flagship cryptocurrency is currently in a highly volatile zone, with high price fluctuations expected.
In order for Bitcoin to maintain its bullish momentum, its RSI would need to cool down below the 60 mark. An RSI below 50 would suggest a decline in BTC’s price volatility.
Hot Take: Whale Activity Decreases Amidst Greedy Market Sentiment
The recent decline in whale transactions involving large amounts of Bitcoin reflects a decrease in activity among major players in the market. This comes at a time when Bitcoin’s price has experienced a slight drop and its trading volume has significantly decreased.
The market sentiment remains extremely greedy, as indicated by the fear and greed index. However, it is important to note that Bitcoin reached a new all-time high just days ago, suggesting that the current levels of greed may not be sustainable.
On the other hand, open interest has increased while the funding rate has declined, indicating a rise in short positions and trades betting on a price decline. This aligns with the liquidations seen in the past 24 hours, further emphasizing the potential for downward pressure on Bitcoin’s price.
With Bitcoin’s RSI in a highly volatile zone, it is crucial for the cryptocurrency to cool down and stabilize in order to maintain its bullish momentum. A decrease in price volatility would provide more stability and confidence for investors.
Overall, while whale activity may have declined and market sentiment remains greedy, it is important for crypto investors to closely monitor these developments and consider the potential risks associated with such conditions.
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