“Hellish reversal candle”: Bitcoin bounced back 30% amid the fall of Terra

“Hellish reversal candle”: Bitcoin bounced back 30% amid the fall of Terra

After the fall of TerraUSD, bitcoin (BTC) bounced back 30%, making a “reverse candle”. The growth of BTC/USD is confirmed by Cointelegraph data .

“Hellish reversal candle”: Bitcoin bounced back 30% amid the fall of Terra

At the beginning of the week, the major cryptocurrencies began to drop sharply in price due to the tightening of the policy of the Federal Reserve . Having reached the mark of $24,000, bitcoin went up sharply to almost 31,000. Analysts explain this by the mass withdrawal of coins from exchanges. On May 11 and 12 alone, the balances of major exchanges fell by 24,335 BTC. The total outflow was much higher, amounting to almost 168k BTC.

The strengthening of bitcoin is also associated with the stop of the Terra blockchain . The largest cryptocurrency has strengthened due to the weakening of the unstable influence of LUNA.

“This is a hell of a reversal candle,” a CryptoBullet trader wrote on Twitter.

However, BTC remains at its lowest level since January on the relative strength index (RSI), which determines the strength of the trend and the likelihood of it changing.

“Hellish reversal candle”: Bitcoin bounced back 30% amid the fall of Terra

The official Bitcoin account notes that the lows of the week are not the maximum drawdowns when compared to historical highs.

“BTC’s all-time high is $68,990. An 80% drawdown is $13,798. $27,000 is about halfway there.”

The collapse of the cryptocurrency market continues – Bitcoin dropped to $26 thousand for the first time since December 2020, and Ethereum is already cheaper than $1800

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