Bitcoin price sees ‘hellish reversal candle’ as 168,000 BTC exits exchanges

Bitcoin (BTC) came back with a vengeance on May 13 as bulls stepped in and took the market close to $31,000.

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BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Bitcoin RSI remains firmly oversold

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

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

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

Outflows were much higher at nearly 168,000 BTC over the same period, but inflows from sellers were just as intense as panic erupted over Terra’s LUNA and TerraUSD (UST) tokens, as well as the largest stablecoin, Tether (USDT).

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Bitcoin exchange netflow chart. Source: CryptoQuant

As LUNA went to near zero and its blockchain halted, Bitcoin nonetheless strengthened as the immediate effects of instability wore off.

“This is one hell of a reversal candle,” popular trader and TradingView contributor CryptoBullet responded to comments on Twitter.

Bitcoin’s Relative Strength Index (RSI), referenced by CryptoBullet, was 31 at the time of writing, still in oversold territory and at its lowest level since January.

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

$14,000 still on the table?

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

Related: 3 Reasons Bears Are Aiming to Pin Bitcoin for BTC Options Expiry Below $30,000 This Week

Among them was the official @Bitcoin Twitter account, who, along with several others, noted that even the weekly lows did not represent a “classic” maximum drawdown from all-time highs.

“$BTC all-time high is $68,990. An 80% drawdown is $13,798. $27,000 is about half that,” it says sent on that day.

“This is Bitcoin. Be prepared.”

Data from on-chain analytics firm Glassnode puts the recent BTC price drop in historical context.

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

As Cointelegraph reported, MicroStrategy, the company with the largest Bitcoin treasury, indicated that it would buy into significant weakness towards $20,000 to support the market.