Bitcoin price sees ‘hell of a reversal candle’ as 168,000 BTC leaves exchanges

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Bit­coin (BTC) came back with a vengeance on May 13 as bulls stepped in to take the mar­ket 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 in the after­math of the Ter­ra debacle.

After “kiss­ing” its real­ized price at $24,000, Bit­coin showed no taste for fresh bear­ish­ness as record on-chain vol­ume com­bined with coins leav­ing exchanges en masse.

On May 11 and May 12 alone, exchange bal­ances declined by over 24,335 BTC, accord­ing to data from on-chain ana­lyt­ics plat­form Cryp­to­Quant, cov­er­ing 21 major platforms.

Out­flows were much high­er at near­ly 168,000 BTC over the same peri­od, but inflows from those seek­ing to sell were equal­ly intense as pan­ic set in over Ter­ra (LUNA) and Ter­raUSD (UST) tokens, as well as the largest sta­ble­coin Teth­er (USDT).

Bit­coin exchange net­flows chart. Source: CryptoQuant

As LUNA went to near­ly zero and its blockchain was halt­ed, Bit­coin, nonethe­less, strength­ened as the imme­di­ate impact of the insta­bil­i­ty waned.

“This is a hell of a rever­sal can­dle,” pop­u­lar trad­er and Trad­ingView writer Cryp­to­B­ul­let react­ed as part of Twit­ter comments. 

Bitcoin’s rel­a­tive strength index (RSI), referred to by Cryp­to­B­ul­let, mea­sured 31 at the time of writ­ing, still in over­sold ter­ri­to­ry and its low­est since January.

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

$14,000 still on the table?

As the dust set­tled on Ter­ra, LUNA and UST, how­ev­er, not every­one was con­vinced that the worst was over.

Relat­ed: 3 rea­sons why bears aim to pin Bit­coin below $30K for this week’s BTC options expiry

Among them was the offi­cial @Bitcoin Twit­ter account, which like sev­er­al oth­ers, not­ed that even the week’s lows did not rep­re­sent a “clas­sic” max­i­mum draw­down ver­sus all-time highs.

“The $BTC all-time high is $68,990. An 80% draw-down is $13,798. $27k is about halfway there,” it post­ed on the day:

“This is Bit­coin. Be prepared.”

Data from on-chain ana­lyt­ics firm Glassnode, mean­while. put the lat­est BTC price dip in his­tor­i­cal context.

Bit­coin draw­down from all-time highs chart. Source: Glassnode

As Coin­tele­graph recent­ly report­ed, MicroS­trat­e­gy, the com­pa­ny with the largest Bit­coin trea­sury, hint­ed that it would buy into any sig­nif­i­cant weak­ness toward $20,000 in an attempt to sup­port the market.

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Cointelegraph.com. Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 



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