Bitcoin price objective is now $29K, according to a trader, following Terra’s $285M ‘FUD’ attack

The doom and gloom for Bitcoin market continues as Terra’s Do Kwon dismisses a “deliberate and organized” attack on its TerraUSD and LUNA tokens. Bitcoin (BTC) prepared for a rare bear feature to return on May 9 after an overnight sell-off took the market ever closer to January lows.

According to CoinCu data, BTC/USD fell below $33.400 on Binance before returning to trade roughly $300 higher at the time of writing.

The pair had found temporary support near $36.000, but this lost way as weak weekend liquidity added to the volatility.

However, Bitcoin liquidations were restricted since market sentiment had long anticipated a deeper decline following a turbulent week on stock markets.

On-chain monitoring resource data Coinglass estimated that 24-hour liquidations for each Bitcoin were worth roughly $105 million.

In an update to his short-term price forecast, famous Twitter analyst Credible Crypto predicted a “flush” that would take BTC/USD as low as $29.000, setting a new 2022 low.

Bids near $30.000, including those of a whale trader on the exchange Bitfinex, may be too alluring to pass up.

The announcement of difficulties at Blockchain protocol Terra maintained the downward momentum through May 8. The company, which vowed to acquire an unlimited number of BTC to support its US dollar stablecoin, TerraUSD (UST), had its first major test when a market player sold about $300 million in UST.

While the impact was minor, UST’s dollar peg was temporarily undermined by up to 0.8 percent.

“Today’s attack on Terra-Luna-UST was purposeful and coordinated,” said Caetano Manfrini, legal officer at the Brazilian crypto industry forum GEMMA.

“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 is bothering someone. on the right path!”

Do Kwon, the Terra co-founder who is now well recognized for his Bitcoin purchases and social media activity, remained unfazed.

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

On weekly timeframes, BTC/USD was near to completing its sixth consecutive red weekly candle — something which had only occurred once before in its history back in 2014. Bitcoin Fear and Greed Index in ‘Extreme Fear’ as price falls below $34k.

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

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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