BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
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 thrashing. After “ kissing ” its gain price at $ 24,000, Bitcoin showed no taste for fresh bearishness as record on-chain book combined with coins leaving exchanges en masse. On May 11 and May 12 alone, rally 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 about 168,000 BTC over the like period, but inflows from those seeking to sell were evenly intense as panic fix in over Terra ( LUNA ) and TerraUSD ( UST ) tokens, equally well as the largest stablecoin Tether ( USDT ) .
Bitcoin exchange netflows chart. Source: CryptoQuant As LUNA went to closely zero and its blockchain was halted, Bitcoin, however, strengthened as the immediate impingement of the instability waned. “ This is a hell of a transposition 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 bulk of the year
+ bullish deviation on RSIBounce scenario still in act hypertext transfer protocol : //t.co/wzTt56053P pic.twitter.com/1mL8QsTGAP— CryptoBullet (@CryptoBullet1) May 13, 2022
Bitcoin ’ s proportional strength exponent ( RSI ), referred to by CryptoBullet, measured 31 at the time of spell, still in oversold territory and its lowest since January.
BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView
$14,000 still on the table?
As the debris settled on Terra, LUNA and UST, however, not everyone was convinced that the worst was complete. 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 report, which like several others, noted that even the week ’ second lows did not represent a “ classic ” utmost drawdown versus all-time highs. “ The $ BTC all-time high gear is $ 68,990. An 80 % draw-down is $ 13,798. $ 27k is about center there, ” it posted on the sidereal day :
“This is Bitcoin. Be prepared.”
Data from on-chain analytics tauten Glassnode, meanwhile. put the latest BTC price dip in diachronic context .
Bitcoin drawdown from all-time highs chart. Source: Glassnode As Cointelegraph recently reported, MicroStrategy, the company with the largest Bitcoin department of the treasury, hinted that it would buy into any significant failing toward $ 20,000 in an attack to support the commercialize. The views and opinions expressed hera are entirely those of the author and do not inevitably reflect the views of Cointelegraph.com. Every investment and deal motivate involves risk, you should conduct your own research when making a decision .
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