Technology

Bitcoin price returns to $30,000 as 168,000 BTC leaves exchanges

Bitcoin (BTC) came back with a bang on May 13 – the top cryptocurrency is trading near $31,000.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin RSI remains firmly oversold

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

Even after “kissing” its realized price of USD 24,000, bitcoin resisted being bearish: its record on-chain volume was combined with the massive outflow of coins from crypto exchanges.

On May 11 and 12 alone, exchange balances decreased by more than 24,335 BTCaccording to data from on-chain analytics platform CryptoQuant, which spans 21 major platforms.

Outflows were much higher, at almost 168,000 BTC, during the same period, but inflows from those looking to sell were equally intense as panic gripped the Terra (LUNA) and TerraUSD (UST) tokens, as well as the major stablecoin Tether (USDT).

Graph of net flows of bitcoin exchanges. Source: CryptoQuant

When LUNA went to near zero and its blockchain ground to a halt, bitcoin, however, grew stronger as the immediate impact of the instability subsided.

“This is one hell of a reversal candle,” Reacted Popular Trader and TradingView CryptoBullet Writer On twitter.

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

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

Is a drop to $14,000 still possible?

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

Among them was the official Twitter account @Bitcoin, which like several others, noted that even the week’s 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. The $27,000 level is halfway there,” public that day:

“This is bitcoin. Get ready.”

On-chain analytics company data Glassnode, meanwhile, put the latest BTC price drop in historical context.

Graph of the fall of bitcoin from its all-time highs. Source: Glassnode

As Cointelegraph recently reported, MicroStrategy, the company with the largest bitcoin treasury, hinted that it would buy BTC if its price weakened significantly towards $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, so you should do your own research when making a decision.

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