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Bitcoin falls below $57,000 for the first time in two months

The price of Bitcoin (BTC) has been on a downward trend over the past week, with its value falling below the psychological $60,000 mark amid increased whale activity.

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

Bitcoin falls below $57,000 for the first time in two months - 1
BTC Price, Whale Activity, RSI and Exchange Offers – May 1 | Source: Santiment

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

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

This move could possibly indicate that some Bitcoin holders may be looking to sell their assets due to the FUD (fear, uncertainty and doubt) floating around 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 for the largest blockchain network.

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