Bitcoin (BTC) returned having a vengeance on May 13 as bulls walked in to accept sell to near $31,000.
Bitcoin RSI stays firmly oversold
Data from Cointelegraph Markets Pro and TradingView confirmed 24-hour gains of 30% for BTC/USD as a direct consequence from the Terra debacle.
After “kissing” its recognized cost at $24,000, Bitcoin demonstrated no taste for fresh bearishness as record on-chain volume coupled with coins departing exchanges en masse.
On May 11 and could 12 alone, exchange balances declined by over 24,335 BTC, based on data from on-chain analytics platform CryptoQuant covering 21 major platforms.
Outflows were much greater at nearly 168,000 BTC within the same period, but inflows from individuals trying to sell were equally intense as panic occur over Terra’s LUNA and TerraUSD (UST) tokens, in addition to largest stablecoin Tether (USDT).
As LUNA visited nearly zero and it is blockchain was stopped, Bitcoin nevertheless strengthened because the immediate impact from the instability waned.
“This can be a hell of the reversal candle,” popular trader and TradingView author CryptoBullet reacted included in Twitter comments.
This can be a hell of the reversal candle
Dragonfly Doji around the greatest Volume of the season
+ bullish divergence on RSIBounce scenario still in play https://t.co/wzTt56053P pic.twitter.com/1mL8QsTGAP
— CryptoBullet (@CryptoBullet1) May 13, 2022
Bitcoin’s relative strength index (RSI) known by CryptoBullet measured 31 during the time of writing, still in oversold territory and it is cheapest since The month of january.
$14,000 still up for grabs?
Because the dust chosen Terra, LUNA and UST, however, not everybody was believing that the worst was over.
Related: three reasons why bears try to pin Bitcoin below $30K with this week’s BTC options expiry
Included in this was the state @Bitcoin Twitter account, which like every others noted that the week’s lows didn’t represent a “classic” maximum drawdown versus all-time highs.
“The $BTC all-time high is $68,990. An 80% draw-lower is $13,798. $27k is all about midway there,” it published at the time.
“This really is Bitcoin. Be ready.”
Data from on-chain analytics firm Glassnode meanwhile place the latest BTC cost dip in historic context.
As Cointelegraph reported, MicroStrategy, the organization using the largest Bitcoin treasury, hinted it would subscribe to any significant weakness toward $20,000 so that they can offer the market.
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