Bitcoin (BTC) came back with a vengeance on May 13 as the bulls moved to take the market closer to $31,000.
Bitcoin RSI remains strongly oversold
Data from Cointelegraph Markets Pro and TradingView confirms a 24-hour gain of 30% for BTC/USD after the Terra debacle.
After “kissing” its true price at $24,000, bitcoin has shown no taste for fresh bearishness as record on-chain volumes combined with the coins left exchanges.
On May 11 and May 12 alone, exchange balances dropped by more than 24,335 BTC, according to data from Cryptoquant, an on-chain analytics platform that covers 21 major platforms.
The outflow was very high at around 168,000 BTC over the same period, but the influx of those seeking to sell was as intense as Tera’s Luna and TeraUSD (UST) tokens, as well as the largest stablecoin Tether (USDT).
As LUNA went almost to zero and its blockchain was halved, bitcoin still strengthened as the immediate effects of volatility subsided.
“This is hell of a reversal candle,” reacted popular trader and TradingView author CryptoBullet as part of the Twitter comments.
it’s a hell of a reversal candle
Dragonfly Doji at year’s highest volume
+ Bullish divergence on RSIBounce scenario still going on https://t.co/wzTt56053P pic.twitter.com/1mL8QsTGAP
— CryptoBullet (@CryptoBullet1) 13 May 2022
Bitcoin’s relative strength index (RSI), referenced by CryptoBullet, measured 31 at the time of writing, is still in oversold territory and its lowest since January.
$14,000 still on the table?
As the dust settled on Terra, Luna and UST, not everyone was sure the worst was over.
RELATED: Bears Target This Week’s BTC Options Expiry 3 Reasons To Pin Bitcoin Below $30K
Among them was the official @Bitcoin Twitter account, which, like many others, noted that even the week’s lows did not represent a “classic” maximum drawdown versus an all-time high.
“$BTC All-Time High at $68,990. 80% Drop at $13,798. $27k Is Almost Half There,” it Posted same day.
“It’s bitcoin. Be prepared.”
Meanwhile, data from on-chain analytics firm Glassnode put the latest BTC price drop in historical context.
As Cointelegraph reported, MicroStrategy, the largest bitcoin treasury company, indicated that it would buy any significant weakness near $20,000 in an attempt to support the market.
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