Bitcoin’s price target is now $ 29,000, trader warns after Terra confuses $ 285 million attack

Bitcoin (BTC) rallied with a rare downturn on May 8, after overnight sales brought the market closer to the January lows.

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

BTC low at $ 34,400

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

The pair received brief support around the $ 36,000 mark, but that support broke due to low liquidity over the weekend which added to the volatility.

Bitcoin liquidations themselves were limited, however, as the market outlook was long overdue for a deeper pullback after a turbulent week in equity markets.

Data from chain monitoring resource Coinglass shows that there is approximately $ 80 million 24 – hour liquidation for bitcoin and ether (ETH).

Cryptocurrency liquidation chart. Source: Coinglass

Updating its near-term price expectation, popular Twitter commentator Credible Crypto envisioned a “wheel” taking BTC / USD as high as $ 29,000, bringing 2022 to a new low.

Offers close to $ 30,000, including those from a whale trader on the Bitfinex exchange, may be too good to put up with.

The bottom at $ 34,400 has almost been reached, so the Finex whale now has 29-32,000 upstream and the number of bids. The man never misses. I’m not on my computer so there are no graphics, this post is just so you won’t be blowing up my phone wondering what’s going on now lol. I still don’t expect the bottom to be built at 28k. $ BTC – Credible Crypto (05.27) (@CredibleCrypto) May 8, 2022

The bearish momentum on May 8 was accompanied by information on the difficulties of the Terra blockchain protocol. The company, which pledged to buy unlimited amounts of BTC in support of its USD stable stock, TerraUSD (UST), saw its first major test when a UST market participant sold for nearly $ 300 million.

While the disruption was small, UST briefly saw the erosion of its dollar pins as low as 0.8%.

“Today’s attack on Terra-Luna-UST was deliberate and coordinated,” said Caetano Manfrini, legal director of the Brazilian cryptocurrency forum GEMMA, after to events.

“A massive dump of 285 million UST on Curve and Binance by one player, followed by huge sales on Luna and hundreds of posts on Twitter. Pure stage play. The project is disturbing someone. In the right way!”

Do Kwon, co-founder of Terra, which is now well known for its bitcoin purchases and social media engagement, has apparently remained calm.

Those of you who wait for the land to become unstable … I fear that you will have to wait for the age of men to expire, for cities to turn to dust, for the oceans to dry up, for the map of the continent to dry up. after withdrawal and that dinosaurs roams the earth again. Gluck – Do Kwon (@stablekwon) May 8, 2022.

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

In other comments, Michaël van de Poppe, a contributor of Cointelegraph admit “The incident did not stimulate the markets”, but was classified as “FUD.” (FUD stands for Man Uncertainty Doubt)

“We’ll see how the price reacts here on bitcoin, because we’re sweeping all these lows right now, a little too leveraged to the downside,” he told his Twitter followers as part of his latest update.

The weekly chart threatens the decline of eight-year-olds

On closer inspection, the bitcoin chart remains unappetizing.

See also: Are there any buyers left for the discount? Bulls Are Absolutely Absent As the total cap of the cryptocurrency market falls to $ 1.65 billion

On a weekly basis, BTC / USD was nearing the end of its sixth consecutive weekly red candle – a landmark event in 2014.

Weekly candle chart of BTC / USD (Bitstamp). Source: TradingView

That year after the peak of the first half-cycle of bitcoin and the subsequent fall, which was exacerbated by the hack of the major exchange at the time, Mt. Gox.

#Bitcoin has only printed 6 consecutive weekly red candles once. It was May 2014. Eight years ago! – Michael van de Poppe (@CryptoMichNL) May 7, 2022

Previously, four consecutive weekly closures made it bitcoin in a case that was last seen after the March 2020 COVID-19 crash.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investments and trades involve risk, you should do your own research before making a decision.

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