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

Bitcoin (BTC) came backmost with a vengeance connected May 13 arsenic bulls stepped successful to instrumentality the marketplace to adjacent $31,000.

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

Bitcoin RSI stays firmly oversold

Data from Cointelegraph Markets Pro and TradingView confirmed 24-hour gains of 30% for BTC/USD successful the aftermath of the Terra debacle.

After "kissing" its realized terms astatine $24,000, Bitcoin showed nary sensation for caller bearishness arsenic grounds on-chain measurement combined with coins leaving exchanges en masse.

On May 11 and May 12 alone, speech balances declined by implicit 24,335 BTC, according to information from on-chain analytics level CryptoQuant covering 21 large platforms.

Outflows were overmuch higher astatine astir 168,000 BTC implicit the aforesaid period, but inflows from those seeking to merchantability were arsenic aggravated arsenic panic acceptable in implicit Terra's LUNA and TerraUSD (UST) tokens, arsenic good arsenic largest stablecoin Tether (USDT).

Bitcoin speech netflows chart. Source: CryptoQuant

As LUNA went to nearly zero and its blockchain was halted, Bitcoin nevertheless strengthened arsenic the contiguous interaction of the instability waned.

"This is simply a hellhole of a reversal candle," fashionable trader and TradingView writer CryptoBullet reacted arsenic portion of Twitter comments.

— CryptoBullet (@CryptoBullet1) May 13, 2022

Bitcoin's comparative spot scale (RSI) referred to by CryptoBullet measured 31 astatine the clip of writing, inactive successful oversold territory and its lowest since January.

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

$14,000 inactive connected the table?

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

Related: 3 reasons wherefore bears purpose to pin Bitcoin beneath $30K for this week’s BTC options expiry

Among them was the authoritative @Bitcoin Twitter account, which similar respective others noted that adjacent the week's lows did not correspond a "classic" maximum drawdown versus all-time highs.

"The $BTC all-time precocious is $68,990. An 80% draw-down is $13,798. $27k is astir halfway there," it posted connected the day.

"This is Bitcoin. Be prepared."

Data from on-chain analytics steadfast Glassnode meantime enactment the latest BTC terms dip successful humanities context.

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

As Cointelegraph reported, MicroStrategy, the institution with the largest Bitcoin treasury, hinted that it would bargain into immoderate important weakness toward $20,000 successful an effort to enactment the market.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.