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

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

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.

#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, 2022

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.

$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.

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.