Bitcoin Price Target Now $29K, Trader Warns After Terra Survives $285M FUD Attack

Bitcoin (BTC) braced for the return of a rare bearish feature on May 8 after an overnight sell-off propelled the market ever closer to January lows.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

BTC circling lows of $34,400

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

The pair had seen brief support around $36,000 but this gave way as thin liquidity increased volatility over the weekend

However, the Bitcoin liquidations themselves were limited as market sentiment had long been anticipating a deeper pullback after a turbulent week in stock markets.

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

Crypto Liquidation Chart. Source: coin jar

Popular Twitter commentator Credible Crypto updated his short-term price outlook, forecasting a “flush” that would take BTC/USD as high as $29,000, marking a new low in 2022.

Bids near $30,000, including those from a whale trader on exchange Bitfinex, may prove too tempting to leave open.

The downward momentum through May 8 accompanied news of issues with the blockchain protocol Terra. The company, which has committed to buying unlimited amounts of BTC to back its US dollar stablecoin TerraUSD (UST), saw its first major test when a market participant mass-sold nearly $300 million worth of UST.

While the disruption was minimal, UST briefly saw its dollar peg erode by as much as 0.8%.

“Today’s attack on Terra Luna UST was deliberate and coordinated,” said Caetano Manfrini, legal officer at Brazilian crypto business forum GEMMA. answered to the events.

“Massive 285M UST dump on Curve and Binance by a single player, followed by massive shorts on Luna and hundreds of Twitter posts. Pure staging. The project bothers someone. On the right way!”

Do Kwon, the Terra co-founder now known for both his Bitcoin purchases and social media engagement, has remained strikingly cool.

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

In further comments, Cointelegraph contributor Michaël van de Poppe authorized that the event “didn’t fuel the markets” but categorized it as “FUD.”

“Let’s see how the price reacts to bitcoin here as we’re currently sweeping all these lows, a bit overextended down,” he told Twitter followers in part of his latest update.

The weekly chart threatens that the bearish pattern is missing for eight years

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

Related: Any Dip Shoppers Left? Bulls are largely absent as total crypto market cap falls to $1.65 trillion

On weekly timeframes, BTC/USD was about to complete its sixth consecutive red weekly candle – something that happened only once in its history in 2014.

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

That year saw the blow-off top of Bitcoin’s first halving cycle and subsequent crash, exacerbated by the hacking of then-major exchange Mt. Gox.

Previously, Bitcoin’s four consecutive red weekly closes had already put it in a situation last seen after the March 2020 COVID-19 crash.

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