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

Bitcoin (BTC) prepared for a rare bear feature to return on May 8 after an overnight sell-off took the market ever closer to January lows.

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

BTC circles $34,400 lows

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

The pair had seen brief support around the $36,000 mark, but this gave way as thin weekend liquidity added to the volatility.

Bitcoin liquidations themselves were limited, however, as market sentiment had long expected a deeper pullback after a tumultuous week on stock markets.

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

Crypto liquidations chart. Source: Coinglass

Updating his short-term price outlook, popular Twitter commentator Credible Crypto envisaged a “flush” taking BTC/USD to as low as $29,000, marking a new 2022 low.

Bids near $30,000, among them those of a whale trader on exchange Bitfinex, may prove too enticing to leave unfilled.

Lows at 34.4k almost taken, so eyes now on a flush into 29-32k along with filling that finex whale’s bids. Dude doesn’t miss. Not at my comp so no charts, this post is just so you guys don’t blow up my phone asking what now lol. Still not expecting lows at 28k to be taken. $BTC

— Credible Crypto (05.27) (@CredibleCrypto) May 8, 2022

The downside momentum into May 8 accompanied news of trouble at Blockchain protocol Terra. The firm, which pledged to buy unlimited amounts of BTC to back its United States dollar stablecoin TerraUSD (UST), saw its first major test as a market participant mass sold UST worth almost $300 million.

While disruption was minimal, UST briefly saw its dollar peg eroded by up to 0.8%.

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

“Massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on Luna…..


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