Trader warns bitcoin price target is now $29,000, after $285 million Terra “FUD” attack

Bitcoin (BTC) price has braced for a rare bearish streak that returned on May 8 after an overnight selloff took the market ever closer to January lows.

1-hour candlestick chart for the BTC/USD pair (Bitstamp). Source: TradingView

BTC borders the lows of $34,400

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD pair fell to $34,200 on Bitstamprecovering to trade around $500 higher at the time of writing.

The pair had seen a brief support around the $36,000 markbut this eased as weak liquidity over the weekend added to volatility.

However, bitcoin liquidations were limited, although market sentiment expected a deeper pullback after a tumultuous week in stock markets.

Data from Coinglass, the on-chain monitoring resource, showed 24-hour liquidations for both bitcoin and Ether (ETH).which is around 80 million dollars.

Cryptocurrency liquidation chart. Source: Coinglass

Updating its short-term price outlook, Credible Crypto, the popular Twitter commentator, was forecasting a “Dump” that would take the BTC/USD pair to $29,000, marking a new 2022 low.

Offers approaching $30,000, including from a whale trader on the Bitfinex exchange, may be too tempting to pass up.

The lows at 34,400 are all but taken so eyes are now on a dump at 29,000-32,000 along with the filling of the Finex whale offerings. The guy doesn’t fail. I’m not near my PC so no charts, this post is just so you guys don’t blow up my phone wondering what happens next. LOL. They are not yet expected to take the lows at 28,000.

The downward momentum on May 8 accompanied news of problems in Terra, the Blockchain protocol. The firm, which has pledged to purchase unlimited amounts of BTC to back its US dollar stablecoin, TerraUSD (UST)saw its first major test when a market participant massively sold nearly $300 million worth of UST.

Although the interruption was minimal, UST briefly saw its dollar peg erode to 0.8%.

Today’s attack on Terra-Luna-UST was deliberate and coordinated.“, answered Caetano Manfrini, legal officer of the Brazilian forum of crypto companies GEMMA, to the events.

“Massive dump of 285 million UST on Curve and Binance by a single actor, followed by massive shorts on Luna and hundreds of Twitter posts. Pure set up. The project is pissing someone off. On the right track!”

Do Kwonthe co-founder of Terra now well known for both his bitcoin purchases and his social media engagement, remained conspicuously cold.

Those of you who expect the earth to become unstable…

I’m afraid they will have to wait until human life ends

Cities have turned to dust

Oceans have dried up completely

The map of the continents has been redrawn

And the dinosaurs roam the earth again

However, despite Kwon’s words, UST was trading about 0.5% below its $1 target at the time of writing.according to data from CoinMarketCap.

In other comments, Cointelegraph contributor Michaël van de Poppe admitted what the event “wasn’t driving the markets” but categorized it as “FUD”.

“Let’s see how the price is reacting here in bitcoin as we are tearing through all those lows currently, bit overextended lower,” he told Twitter followers in part of his latest update.

The weekly chart threatens a bearish pattern not seen for eight years

From afar, meanwhile, the bitcoin chart still looked decidedly unappetizing.

On weekly time frames, the BTC/USD pair was close to completing its sixth consecutive red weekly candle, something that had only happened once before in its history, in 2014.

1-week candlestick chart for the BTC/USD pair (Bitstamp). Source: TradingView

That year followed the top of bitcoin’s first halving cycle and its subsequent crash.exacerbated by the hack of the then-big exchange Mt. Gox.

#Bitcoin has only printed 6 weekly red candles in a row in history.

That was in May 2014.

Eight years ago!

Previously, four consecutive weekly red closes of bitcoin had already put it in a situation that last occurred after the March 2020 COVID-19 pandemic crash.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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