Bitcoin’s Recent Plunge
Bitcoin is experiencing quite the rollercoaster ride lately. After a heart-stopping overnight sell-off, it dawned on May 8 that we might see a rare bear feature re-emerge, bringing Bitcoin closer to its January lows. This ain’t the joyride most crypto enthusiasts signed up for!
The Dip: What Happened?
According to data from various market sources, Bitcoin (BTC/USD) recently dipped to $34,200 on Bitstamp, recovering slightly to around $500 higher shortly after. This tumble was fueled by thin weekend liquidity, which only added to the volatility. It’s almost like Bitcoin saw a nice cliff and, well, decided to go for a jump.
Where Are the Buyers?
Interestingly, the downside momentum had a twist. Despite the sharp dips, liquidations for Bitcoin and Ether (ETH) were relatively muted, totaling about $80 million in 24 hours. It seems market sentiment was chilling, bracing for a deeper pullback following a chaotic week on stock markets.
Price Predictions and Expert Opinions
Making waves on social media, popular commentator Credible Crypto had some thoughts on where Bitcoin might land next. He speculated on a potential flush to $29,000, citing two giant whale bids around the $30,000 mark. Now, whether that’s a raindance or just wishful thinking is up for debate!
Other Factors at Play: The Terra Situation
Adding to the drama was the turbulence surrounding the Blockchain protocol Terra. On the same day, the company faced a major test with a mass sale of its UST stablecoin—a whopping $300 million. Following this, UST momentarily lost its dollar peg, adding even more salt in the crypto wound.
Comments from the Frontlines
“Today’s attack on Terra-Luna-UST was deliberate and coordinated.” – Caetano Manfrini
Meanwhile, Terra’s co-founder, Do Kwon, nonchalantly addressed the situation with a tweet that almost sounded like a scene from a sci-fi movie, suggesting negative expectations would be waiting for a long time.
The Green and the Red: Weekly Chart Analysis
For those looking at the broader picture, Bitcoin’s weekly chart tells a challenging story. With the price sitting uncomfortably close to a potential seventh consecutive red weekly candle, that only happened once before, back in 2014. Spoiler alert: that wasn’t a fun year for Bitcoin either!
What Lies Ahead?
Looking ahead, the bear pattern from eight years ago looms ominously. The only thing we can do now is tune into the fluctuations and rely on our gut—oh, and maybe some good old-fashioned research. Remember, folks, every investment carries risks, so let’s buckle up for this ride!
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