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

Bitcoin (BTC), which was resurrected by bulls on May 13, saw the market rise to close to $31,000.

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

Bitcoin RSI remains firmly oversold

Data from TradingView and Cointelegraph Markets Pro confirmed that BTC/USD gained 30% over 24 hours following the Terra disaster.

Bitcoin’s realized price of $24,000 was “kissed” and it showed no desire to be renewed by bearishness. Record on-chain volumes were combined with coins being removed from exchanges in masse.

According to CryptoQuant data, which covers 21 major platforms, exchange balances fell by more than 24,335 BTC on May 11 and 12.

Over the same period, outflows were higher at almost 168,000 BTC, but inflows by those looking to sell were equally intense, with panic over Terra (LUNA), TerraUSD (UST), and the largest stablecoin, Tether (USDT) tokens.

Bitcoin exchange netflows chart. Source: CryptoQuant

Despite the fact that LUNA fell to almost zero and its blockchain was halted by the authorities, Bitcoin grew as the instability’s immediate impact waned.

CryptoBullet, a popular tradingview writer and trader, tweeted his reaction as part of the Twitter comments.

#BTC $BTC This is a hell of a reversal candle Dragonfly Doji on the highest Volume of the year + bullish divergence on RSI Bounce scenario still in play https://t.co/wzTt56053P pic.twitter.com/1mL8QsTGAP
— CryptoBullet (@CryptoBullet1) May 13, 20,22

CryptoBullet refers to Bitcoin’s relative strength indicator (RSI) as 31 at the time. It is still oversold and has been at its lowest level since January.

BTC/USD 1-day Candle Chart (Bitstamp), with RSI. Source: TradingView

Is $14,000 still available?

However, not everyone believed that Terra, LUNA, and UST were safe.

Related: Three reasons bears want to keep Bitcoin below $30K in this week’s BTC options expiry

The official Twitter account @Bitcoin noted, along with several others, that even the week’s lows were not a “classic maximum drawdown” compared to all-time highs.

The $BTC all time high is $68,990. $13,798 is the drawdown at 80%. $27k is approximately halfway there,” it said on the day.

This is Bitcoin. “Be prepared.”

Data from Glassnode, an on-chain analytics company. The latest BTC price drop is placed in historical context

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

Cointelegraph reported recently that MicroStrategy (the company with the largest Bitcoin Treasury) hinted at the possibility of buying into any weakness towards $20,000 to help the market.

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https://cointelegraph.com/news/bitcoin-price-sees-hell-of-a-reversal-candle-as-168-000-btc-leaves-exchanges