CBX Weekly Newsletter // 1 July 2020
- Bitcoin Price Analysis for the Week
- Bitcoin Still Up 27% This Year Despite Dismal June Performance
- Hacker Drains $500K From DeFi Liquidity Provider Balancer
Bitcoin Price Analysis for the Week
Last week we saw prices break the trend line, followed by a few days of consistent sell-offs.
This would have triggered the short entry plan, with prices coming down to a low of $8844. However, prices did not fall as much as expected and we see the market has been indecisive again at the 8900–9300 level.
Range is still tightening week after week, in a very indecisive market. There are strong players on both sides of the fence!
Bearish Scenario:
Bollinger band is tightening and a sharp movement may be near.
As prices have been closing below EMA consistently, our bias leans towards a bearish movement this week. Prices are likely to touch the EMA and then experience a continued downtrend.
For high risk players, entry can be made when prices are close to the EMA. TP@ the $8,000 level.
Bullish Scenario:
If the market however closes above EMA, this would be a signal to go long. Profit level at $9,900, just before the $10,000 mark, where there has been strong resistance for a while now.
Bitcoin Still Up 27% This Year Despite Dismal June Performance
Bitcoin (BTC) is still outperforming the top traditional financial assets so far in 2020 — even after a dour performance this month.
At time of writing (10:00 UTC), bitcoin is trading around $9,170, representing a 27.8% gain on a year-to-date (YTD) basis, according to CoinDesk’s Bitcoin Price Index.
Meanwhile, gold and the U.S. Dollar Index, which tracks the value of the greenback against major currencies, are reporting 16% and 5.4% gains for 2020, respectively. The S&P 500 index and oil prices are in the red YTD at -5.5% and -34.22%, respectively, as per data source Skew.
While bitcoin’s YTD performance looks impressive, on a monthly basis the cryptocurrency is being outshone by most of the other assets included in the chart.
At press time, bitcoin is down over 3% from the opening price of $9,444 observed on June 1, having rallied by 34% and 9.5% in April and May, respectively.
HODLing growth
Onchain metrics are also painting a long-term bullish picture. For instance, the percent of bitcoin’s circulating supply that has not moved in at least 12 months reached a record high of 61.59% on Monday. The figure surpasses the previous lifetime high of 61.13% seen in January 2016, according to data provided by the blockchain intelligence firm Glassnode.
Hacker Drains $500K From DeFi Liquidity Provider Balancer
“We were not aware this specific type of attack was possible.”
Decentralized finance (DeFi) liquidity provider Balancer Pool admitted early Monday morning it had fallen victim to a sophisticated hack that exploited a loophole, tricking the protocol into releasing $500,000 worth of tokens.
In a blog post, Balancer CTO Mike McDonald said the attacker had borrowed $23 million worth of WETH tokens, an ether-backed token suitable for DeFi trading, in a flash loan from dYdX. They then traded, against themselves, with Statera (STA), an investment token that uses a transfer fee model and burns 1% of its value every time it’s traded.
The hacker’s identity remains a mystery but analysts at 1inch exchange, a decentralized exchange aggregator, said the hacker had covered their tracks well: The ether used to pay transaction fees and deploy smart contracts was laundered through Tornado Cash, an Ethereum-based mixer service.
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