On the weekly chart, the relative strength index (RSI) of #Bitcoin is currently at 67, indicating that the asset may be overheated. Bitcoin's RSI has fallen significantly since its 2024 high of 88, reached on March 24, according to TradingView.

The RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.

Investors' focus has shifted to the upcoming Bitcoin halving, causing long-term holders to begin selling their holdings and moving them off exchanges.

According to a Bitfinex research report shared with Cointelegraph, a rebound in Bitcoin price could be seen as long as short-term holders absorb supply:

"There has been a shift in the structure of the #Bitcoin investor base with new entrants (Short Term Holders) absorbing the supply sold by Long Term Holders (LTHs). Although this is evidenced by the rising Market Cap/Realized Value ratio for STHs, this ratio is still "If this dynamic of STHs absorbing LTH sales continues, this could indicate prices could rise further."