Bitcoin (BTC) is poised for a rare bearish feature to return on May 8 after overnight sell-off pushed the market closer to January lows.
Bitcoin surrounds $34,400 low
Data from TradingView shows that Bitcoin price dropped to $34,200 on Bitstamp and recovered to trade around $500 higher at the time of writing. On May 7, BTC found short support near $36,000, but this was lost as weak weekend liquidity added to volatility. However, data from on-chain data source Coinglass shows 24-hour liquidations worth around $80 million for both Bitcoin and Ethereum (ETH).
Updating its short-term price outlook, popular Twitter analyst Credible Crypto predicts a “collapse”, marking the new low of 2022, with Bitcoin price dropping as low as $29,000.
The downward momentum on 8 May, blockchain protocol Terra Accompanying news of trouble
The firm, which promised to purchase unlimited amounts of BTC to support TerraUSD (UST), saw its first major test as a market participant selling UST worth approximately $300 million. While the outage was minimal, the UST rate briefly eroded 0.8%. Caetano Manfrini, legal officer at Brazilian crypto business forum GEMMA, says:
The attack on Terra-Luna-UST today was deliberate and coordinated. 285 million UST dumps on Curve and Binance by a single player, followed by massive shorts on Luna and hundreds of Twitter posts.
Now known for both Bitcoin purchases and social media engagement, Terra co-founder Do Kwon has evidently kept his cool.
Weekly chart threatens bear model that has disappeared for eight years
On weekly timeframes, BTC/USD was close to completing its sixth consecutive red weekly candle – something that occurred only once in its history in 2014.
In 2014, Bitcoin’s first halving cycle followed the peak and subsequent decline, and at that time major stock market Mt. It got worse after Gox was hacked. Micheal Van de Poppe, whose analysis we share as Kriptokoin.com, says:
Bitcoin has lost only 6-week red candles in a row so far.
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