Bitcoin cost sees ‘hell of the reversal candle’ as 168,000 BTC leaves exchanges

Bitcoin (BTC) returned having a vengeance on May 13 as bulls walked in to accept sell to near $31,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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).

Bitcoin exchange netflows chart. Source: CryptoQuant

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.

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.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView

$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.

Bitcoin drawdown all-time highs chart. Source: Glassnode

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.

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

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