Bitcoin cost target now $29K, trader warns after Terra weathers $285M ‘FUD’ attack

Bitcoin (BTC) ready for an uncommon bear feature to come back on May 8 after a weekend sell-off required the marketplace ever nearer to The month of january lows.

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

BTC circles $34,400 lows

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $34,200 on Bitstamp, recovering to trade around $500 greater during the time of writing.

The happy couple saw brief support round the $36,000 mark, however this gave way as thin weekend liquidity put into the volatility

Bitcoin liquidations themselves were limited, however, as market sentiment had lengthy expected a much deeper pullback following a tumultuous week on stock markets.

Data from on-chain monitoring resource Coinglass countered 24-hour liquidations for Bitcoin and Ether (ETH) running around $80 million.

Crypto liquidations chart. Source: Coinglass

Updating his short-term cost outlook, popular Twitter commentator Credible Crypto envisaged a “flush” taking BTC/USD to as little as $29,000, marking a brand new 2022 low.

Bids near $30,000, included in this individuals of the whale trader on exchange Bitfinex, may prove too enticing to depart unfilled.

The down-side momentum into May 8 supported news of trouble at Blockchain protocol Terra. The firm, which promised to purchase limitless levels of BTC to back its U.S. dollar stablecoin, TerraUSD (UST), saw its initial test like a market participant mass offered UST worth almost $300 million.

While disruption was minimal, UST briefly saw its dollar peg eroded by as much as .8%.

“Today’s attack on Terra-Luna-UST was deliberate and coordinated,” Caetano Manfrini, legal officer at Brazilian crypto business forum GEMMA, responded towards the occasions. 

“Massive 285m UST dump on Curve and Binance with a single player adopted by massive shorts on Luna and countless twitter updates. Pure staging. The work is bothering someone. on the right track!”

Do Kwon, the Terra co-founder now well-known for his Bitcoin buys and social networking engagement, continued to be conspicuously awesome.

Despite Kwon’s words, however, UST traded around .5% below its $1 target during the time of writing, based on data from CoinMarketCap.

In further comments, Cointelegraph contributor Michaël van de Poppe accepted the event “wasn’t fueling the markets” but categorized it as being “FUD.”

“Let us observe how cost is reacting here on Bitcoin as we are sweeping all individuals lows presently, little overextended towards the downside,” he told Twitter supporters partly of his latest update. 

Weekly chart threatens bear pattern absent for eight years

Zooming out, meanwhile, the Bitcoin chart still looked decidedly unappetizing.

Related: Any dip buyers left? Bulls are largely absent because the total crypto market cap drops to $1.65T

On weekly timeframes, BTC/USD was close to finishing its sixth consecutive red weekly candle — a thing that had only happened once before in the history in 2014.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

That year adopted the blow-off surface of Bitcoin’s first halving cycle and subsequent comedown, exacerbated through the hacking of then major exchange Mt. Gox.

Formerly, Bitcoin’s four straight red weekly closes had already place it in times last occurring following the March 2020 COVID-19 crash.

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

Latest stories

You might also like...