Friday, March 29, 2024

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

READ ALSO


Bitcoin (BTC) ready for a uncommon bear function to return on Might 8 after an in a single day sell-off took the market ever nearer to January lows.

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

BTC circles $34,400 lows

Information from Cointelegraph Markets Professional and TradingView confirmed BTC/USD dipping to $34,200 on Bitstamp, recovering to commerce round $500 larger on the time of writing.

The pair had seen transient assist across the $36,000 mark, however this gave approach as skinny weekend liquidity added to the volatility.

Bitcoin liquidations themselves had been restricted, nevertheless, as market sentiment had lengthy anticipated a deeper pullback after a tumultuous week on inventory markets.

Information from on-chain monitoring useful resource Coinglass countered 24-hour liquidations for each Bitcoin and Ether (ETH), operating at round $80 million.

Crypto liquidations chart. Supply: Coinglass

Updating his short-term price outlook, in style Twitter commentator Credible Crypto thought of a “flush” taking BTC/USD to as little as $29,000, marking a brand new 2022 low.

Bids close to $30,000, amongst them these of a whale trader on Bitfinex trade, might show too attractive to go away unfilled.

The draw back momentum into Might 8 accompanied information of bother at Blockchain protocol Terra. The agency, which pledged to purchase limitless quantities of BTC to again its United States greenback stablecoin TerraUSD (UST), noticed its first main check as a market participant mass offered UST price nearly $300 million.

Whereas disruption was minimal, UST briefly noticed its greenback peg eroded by as much as 0.8%.

“As we speak’s attack on Terra-Luna-UST was deliberate and coordinated,” Caetano Manfrini, authorized officer at Brazilian crypto enterprise discussion board GEMMA, responded to the occasions.

“Huge 285m UST dump on Curve and Binance by a single participant adopted by large shorts on Luna and a whole lot of twitter posts. Pure staging. The mission is bothering somebody. on the appropriate path!”

Do Kwon, the Terra co-founder now well-known for each his Bitcoin buys and social media engagement, remained conspicuously cool.

Regardless of Kwon’s phrases, nevertheless, UST traded round 0.5% under its $1 target on the time of writing, based on knowledge from CoinMarketCap.

In additional feedback, Cointelegraph contributor Michaël van de Poppe verified that the occasion “was not fueling the markets” however categorized it as “FUD.”

“Let’s examine how price is reacting right here on Bitcoin as we’re sweeping all these lows at present, little overextended to the draw back,” he instructed Twitter followers in part of his newest replace.

Weekly chart threatens bear sample absent for eight years

Zooming out, in the meantime, the Bitcoin chart nonetheless appeared decidedly unappetizing.

Associated: Any dip consumers left? Bulls are largely absent as the entire crypto market cap drops to $1.65T

On weekly timeframes, BTC/USD was close to to finishing its sixth consecutive pink weekly candle — one thing which had solely occurred as soon as earlier than in its historical past again in 2014.

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

That yr adopted the blow-off prime of Bitcoin’s first halving cycle and subsequent comedown, exacerbated by the hacking of then main trade Mt. Gox.

Beforehand, Bitcoin’s 4 straight pink weekly closes had already put it in a state of affairs final occurring after the March 2020 COVID-19 crash.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your individual analysis when making a choice.