Bitcoin (BTC) came back with a bang on May 13 – the top cryptocurrency is trading near $31,000.
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).
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.
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
#BTC $BTC. This is one hell of a reversal candle. Dragonfly doji on the biggest volume of the year + bullish divergence on the RSI. The rebound scenario is still in play.
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.
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.
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.
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