On November 5, the Bitcoin price exhibited a sharp bullish trend, following the bullish breakout of descending triangle pattern. So far, BTC is up more than 5% to $21,375, and the technical outlook is signaling more upside potential.
Similarly, Ethereum is following in the footsteps of Bitcoin, rising more than 6% in the last 24 hours to trade at $1,645 as a lower unemployment rate may signal a slower rate hike.
The global cryptocurrency market cap remains above $1 trillion, sending major cryptocurrencies into positive territory early on November 5. However, the total crypto market volume has remained positive in the last 24 hours, reaching $102 billion.
The United States added 261,000 jobs in October, which was significantly better than predicted, given the continuing slowdown in the job-creation rate.
While this was happening, average hourly earnings were also trending upward, a sign of sustained inflationary pressures in the labor market.
Top Altcoin Gainers and Losers
Dogecoin (DOGE), Arweave (AR), and Mina (MINA) were the top performers this week. Dogecoin’s price has increased by more than 55% to $0.1349, while Arweave’s price is up by nearly 45% to $15. At the same time, MINA has gained around 6% to trade at $0.7733.
Top Altcoin Gainers and Losers – Source: Coin360
Aptos (APT) has dropped more than 8% to $7.65 in the last 24 hours. Casper (CSPR) is down over 3% to around $0.041, and EthereumPoW (ETHW) is down about 7% to $6.50.
Statement by President Joe Biden on the October Jobs Report
Friday’s employment report showed 261,000 more jobs, and the unemployment rate stayed at a record low of 3.7%. This shows that the job market is getting better. Jobs have been created every month of his presidency, the economy has grown by a record 10 million, and they have added 700,000 manufacturing jobs, which is 137,000 more manufacturing jobs than the US had before the pandemic.
Black and Hispanic unemployment rates are at historic lows, the GDP is rising, and wages are rising.
Yet, it is clear that the Republican leadership is hoping for a recession, as evidenced by their comments. Biden understands how hard it is on American families due to inflation, which is our biggest economic burden. The rampant inflation in other nations is also affecting the US.
According to the report, Biden has a strategy to lower prices, particularly those associated with healthcare, electricity, and other necessities.
Since the US job recovery is still strong, a stronger dollar could keep cryptocurrencies bearish. However, for the time being, Bitcoin and Ethereum are on the rise.
Bitcoin Price
The current Bitcoin price is $$21,410, and the 24-hour trading volume is $56 billion. Bitcoin has gained over 4% during the Asian session. CoinMarketCap currently ranks it first, with a live market cap of $385 billion, down from $390 billion yesterday.
The BTC/USD has breached the major resistance level of $21,000 and is now en route to the net resistance levels of $22,000 and $22,750. Furthermore, the RSI and MACD are currently in the buying zone, indicating that the uptrend is likely to continue.
Bitcoin Price Chart – Source: Tradingview
In addition, BTC has closed a bullish engulfing candle, indicating a strong bullish trend. While the support level remains at $21,000, a break below this level may expose the BTC price to $20,400 or $19,950.
Ethereum Price
Ethereum’s current price is $1,654, with a 24-hour trading volume of $20 billion. In the last seven days, Ethereum has gained over 4%, and over 4.5% in the last 24 hours. Ethereum is now ranked second on CoinMarketCap, with a live market capitalization of $202 billion, up from $190 billion yesterday.
The ETH/USD pair broke through the symmetrical triangle that had been extending resistance near $1,600. For the time being, the same level is acting as a support for Ethereum. The 50-day moving average is also extending support at $1,600, and the RSI and MACD indicators are both indicating a bullish bias. A bullish breakout above $1,700 resistance may push ETH toward the $1,760 resistance level.
Ethereum Price Chart – Source: Tradingview
On the bearish side, closing candles below $1,665 have the potential to push ETH to $1,620 or $1,550 today.
New Crypto Presales
With the announcement that the Dash 2 Trade presale raised more than $4 million, the company has also confirmed that the D2T token will be sold for the first time on Lbank exchange.
These achievements came less than two weeks after the start of its public token sale, indicating growing investor interest in its trading intelligence platform.
Dash 2 Trade (D2T) will be listed on LBANK Exchange following the completion of the second of nine presale phases. Dash 2 Trade, a cutting-edge dashboard and intelligence platform, is expected to be released in the first quarter of 2023.
D2T has captivated cryptocurrency investors all over the world, raising over $4.3 million in its presale. Furthermore, presales have recently been brisk, and D2T is well-positioned to capitalize on the trend.
The market is currently in a news-driven environment where the prices of cryptocurrencies have been determined by news agenda rather than fundamentals.
Bitfinex analysts have warned crypto investors to be cautious as bitcoin’s (BTC) recovery over the weekend is not a sign that its correction is over; the asset could witness more bloodshed in the near term.
In the latest Bitfinex Alpha report, experts deemed the market’s reaction this week critical, especially as supply alleviated over the weekend could return when traditional markets open.
“No Man’s Land”
Since Saturday, bitcoin has risen almost 10% from $57,600 to $63,000, closing last week in the green. The asset has surged above the 125-day range low of $60,200, which it broke through earlier this month after news of the German government’s massive BTC selling hit the market.
Market sentiment began to improve after reports that wallets linked to the German government were almost empty. However, the positive sentiment may not be sustained for long as the BTC the German authorities moved to trading desks and exchanges are yet to be sold.
While the supply from Germany appears to have been factored into bitcoin’s market price, Bitfinex analysts believe the end of selling pressure depends on how the involved trading desks execute their trades in the coming days.
Although the shift in sentiment underscores the market’s capacity to integrate new information and adjust expectations quickly, analysts think the market’s reaction over the first two trading days of the week cannot be overlooked for two reasons.
First, the low support level in the $60,200 range has now become a potential resistance line. Second, trading patterns over the past three months suggest that weekends are usually favorable for markets, especially on Saturdays when supply pressure seems to subside.
“We are now in no man’s land until we get clear resolution above or below this level,” the analysts said.
A News-Driven Environment
Besides the potential resistance level and three-month weekend trading pattern, the market is currently in a news-driven environment, where the prices of cryptocurrencies have been determined by news agendas rather than fundamentals.
Since selling pressure concerns are not yet completely obsolete due to upcoming Mt Gox creditor distributions, Bitfinex analysts expect such headlines to continue to have some impact on price movements. As such, the analysts urged investors to exercise caution in their trading strategies.
BlackRock’s IBIT led with $117.25 million in inflows on July 15, also being the most traded Bitcoin ETF.
The US spot Bitcoin ETFs recorded a daily net inflow of $301 million on July 15th. This extended their winning streak to seven consecutive days amidst a broader market recovery.
None of the ETFs recorded outflows for the day.
Bitcoin ETFs Rake in $16.11B in Net Inflows Since Jan
According to the data compiled by SoSoValue, BlackRock’s IBIT, the top spot Bitcoin ETF by net asset value, recorded the largest net inflows of the day at $117.25 million. IBIT was also the most actively traded Bitcoin ETF on Monday, with a volume of $1.24 billion. Ark Invest and 21Shares’ ARKB came in close behind with net inflows of $117.19 million.
Fidelity’s FBTC experienced net inflows of $36.15 million on Monday, while Bitwise’s BITB saw $15.24 million in inflows. VanEck’s HODL, Invesco and Galaxy Digital’s BTCO, and Franklin Templeton’s EZBC funds also recorded net inflows. Meanwhile, Grayscale’s GBTC and other ETFs, such as Valkyrie’s BRRR, WisdomTree’s BTCW, and Hashdex’s DEFI, registered no flows for the day.
A total of $2.26 billion was traded on Monday. The trading volume for these ETFs was less than in March when it exceeded $8 billion on some days. Meanwhile, these funds have collectively attracted $16.11 billion in net inflow since their January launch.
What’s Next For Bitcoin?
Earlier this month, bitcoin’s price decline was mainly due to fears of massive selling pressure from Mt. Gox and the German government’s BTC sales.
But the assassination attempt on pro-crypto former US President and presumptive Republican candidate Donald Trump at Saturday’s rally seemed to spark a recovery in the world’s largest digital asset, and experts are bullish on the asset’s price trajectory going forward. Bitcoin surged more than 9% over the past week and was currently trading slightly below $64,000.
Veteran trader Peter Brandt discussed bitcoin’s price outlook, suggesting a potential major rally. He referred to a pattern he terms “Hump->Slump->Bump->Dump->Pump” and highlighted that the July 5 double top attempt was a bear trap, confirmed by the July 13 close. He sees a likely continued upward trend but warned that a close below $56,000 would negate this bullish view.
“Bitcoin $BTC could be unfolding its often-repeated Hump…Slump…Bump…Dump…Pump chart construction. Jul 5 attempt at the double top was a bear trap, confirmed by Jul 13 close. Most likely scenario now is that bears are trapped. Close below $56k negates this interpretation”
PeckShield alert reveals LI.FI’s protocol vulnerability is similar to a March 2022 attack, with the same bug recurring.
The decentralized finance (DeFi) platform LI.FI protocol has suffered an exploit amounting to over $8 million.
Cyvers Alerts reported detecting suspicious transactions within the LI.FI cross-chain transaction aggregator.
LI.FI Issues Warning After $8 Million Exploit
LI.FI confirmed the breach in a statement on July 16 via X: “Please do not interact with any http://LI.FI powered applications for now! We’re investigating a potential exploit.” The team clarified that users who did not set infinite approval are not at risk, emphasizing that only those who manually set infinite approvals seem to be affected.
According to Cyvers Alerts, more than $8 million in user funds have been stolen, with the majority being stablecoins. According to on-chain data, the hacker’s wallet holds 1,715 Ether (ETH) valued at $5.8 million and USDC, USDT, and DAI stablecoins.
Cyvers Alerts advised users to revoke relevant authorizations immediately, noting that the attacker is actively converting USDC and USDT into ETH.
Crypto security firm Decurity provided insights into the exploit, stating that it involves the LI.FI bridge. “The root cause is a possibility of an arbitrary call with user-controlled data via depositToGasZipERC20() in GasZipFacet, which was deployed 5 days ago,” Decurity explained on X.
“In general, the risks behind routers, cross-chain swaps, etc. are about token approvals. Raw native assets like (unwrapped) ETH are safe from these kinds of hacks b/c they don’t have approvals as an option. Most users & wallets also no longer do “infinite approvals” which gives a smart contract total control on removing any amount of their tokens. It’s important to understand which tokens you’re approving to which contracts.
This dashboard looks for all transactions of a user that intersects Lifi. Not all of these transactions indicate risk- but you can see how, broadly, integrations & layers of tech (like how Metamask bridge uses Lifi on BSC) can complicate how users do or don’t put their assets at risk. Revoke Cash is the most well known approval manager app.
But it’s also good security practice to simply rotate your address. New addresses start with 0 approvals, so starting fresh by moving your tokens to a fresh address is another good security practice.” – commented Carlos Mercado, Data Scientist at Flipside Crypto.
Recent Exploit Mirrors March 2022 Attack
Further analysis by PeckShield alert revealed that the vulnerability is similar to a previous attack on LI.FI’s protocol that occurred on March 20, 2022. That incident saw a bad actor exploit LI.FI’s smart contract, specifically the swapping feature, before bridging.
The attacker manipulated the system to call token contracts directly within their contract’s context, making users who had given infinite approval vulnerable. This exploit resulted in the theft of approximately 205 ETH from 29 wallets, affecting tokens such as USDC, MATIC, RPL, GNO, USDT, MVI, AUDIO, AAVE, JRT, and DAI.
“The bug is basically the same. Are we learning anything from the past lesson(s)?” PeckShield Alert said in a July 16 X post.
Following the 2022 incident, LI.FI disabled all swap methods in its smart contract and worked on developing a fix to prevent future vulnerabilities. However, the recurrence of a similar exploit raises concerns about the platform’s security measures and whether adequate steps were taken to address the vulnerabilities identified in the previous breach.
LI.FI is a liquidity aggregation protocol that allows users to trade across various blockchains, venues, and bridges.
