Bitcoin, the leading cryptocurrency, finally found support near the $16,900 level on December 7, which is being extended by an upward trendline. The second-most valuable cryptocurrency, Ethereum, is also supported above $1,240, a level that is extended by a double-bottom pattern visible in the 2-hour timeframe.
Major cryptocurrencies traded in a mixed bag early on December 7, with the global crypto market capitalization falling 0.02% to $855.67 billion on the previous day.
We will go over the technical outlook in detail later in this article, but for now, let’s look at the fundamentals of the market.
Let’s take a look at the top 24-hour altcoin gainers and losers.
Top Altcoin Gainers and Losers
Trust Wallet Token (TWT), MultiversX (EGLD), and Holo (HOT) are three of the top 100 coins that have gained value in the last 24 hours. TWT’s price has risen nearly 5% to $2.40; EGLD’s price has risen more than 4.5% to $45.28; HOT’s price has risen nearly 4.5%.
Top Altcoin Gainers and Losers – Source: Coin360
Celo (CELO), Aptos (APT), and Kava (KAVA) are three of the top 100 coins that have lost value in the last 24 hours. Whereas CELO has lost about 4.70% to trade at $0.6185, APT is down nearly 4% to trade at $4.90. At the same time, the KAVA price is down over 4.8% to trade at $0.8635.
Billionaire Tim Draper Predicts BTC Price Increase to $250,000 Next Year
Tim Draper, the founder of Draper Associates and one of Silicon Valley’s most prominent financiers, has reiterated his $250,000 Bitcoin ($BTC) price prediction, claiming the cryptocurrency will reach that number by June of next year.
CNBC reports that despite the bankruptcy of the cryptocurrency exchange FTX, Draper still expects the flagship cryptocurrency to climb by over 1,400% in less than a year.
According to his statement, the $250,000 forecast was pushed out from its initial date of late 2022 or early 2023 by six months.
Crypto Will Be Regulated as Securities, Senator Warren
Both Senator Elizabeth Warren and Jeffrey Sprecher, CEO of Intercontinental Exchange Inc (ICE), have stated that most cryptocurrencies will be regulated as securities in the United States.
Sprecher, whose company ICE oversees the New York Stock Exchange, predicted confidently on December 6 at a financial services conference hosted by Goldman Sachs Group Inc that cryptocurrency assets are “going to be regulated and treated like securities.”
He claimed this would lead to stricter regulation of centralized exchanges and brokers, resulting in more protections for individual investors.
“What does that mean? It means more transparency, it means segregated client funds, the role of the broker as a broker-dealer will be overseeing and the exchanges will be separated from the brokers. The settlement and clearing will be separated from the exchanges.”
Overall, it will be viewed positively by investors and may contribute to the BTC uptrend.
Bitcoin Price
The current Bitcoin price is $17,012, and the 24-hour trading volume is $19 billion. During the last 24 hours, the BTC/USD pair has lost nearly 2%, while CoinMarketCap currently ranks first with a live market cap of $357 billion.
Given the ongoing risk-off sentiment and strong US dollar, the BTC/USD pair fell from $17,385 to give up most of its gains. It is now gaining immediate support at $16,900, which is being extended by a 4-hour timeframe upward trendline.
If BTC can consolidate above $17,000, there is a chance of a bullish reversal. On the upside, Bitcoin may encounter resistance at $17,385; a bullish breakout above this level may allow for additional buying up to $17,650 or $18,000.
Bitcoin Price Chart – Source: Tradingview
A break below the $16,840 support level, on the other hand, could extend the selling trend all the way to the $16,500 level.
Ethereum Price
The current price of Ethereum is $1,261, with a 24-hour trading volume of $5 billion. In the last 24 hours, Ethereum is mostly unchanged on Wednesday, gaining less than 0.50%. CoinMarketCap currently ranks #2, with a live market cap of $154 billion.
On the 4-hour chart, Ethereum has fallen to the previous support area of $1,250, and a candle closing above this level has the potential to drive a rebound. On the plus side, ETH has the potential to break through the $1,300 resistance level.
As the 50-day moving average approaches $1,250, the bullish bias remains strong.
Ethereum Price Chart – Source: Tradingview
In contrast, the RSI and MACD have recently entered the selling zone, indicating a selling trend in ETH. However, it looks like a bearish correction, and bulls will remain optimistic until $1,250 is reached.
Increased selling pressure may result in a bearish breakout, allowing for additional selling until the $1,220 or $1,185 levels are reached.
Today, keep an eye on $1,250 as it is likely to act as a major pivot point.
IMPT Presale Ends Soon: 1 Week to Buy
IMPT is a new Ethereum-based network that will reward users for doing business with environmentally conscious companies. The company’s IMPT token will provide these benefits, which can be used to purchase NFT-based carbon offsets, which can then be sold or retired.
IMPT has raised more than $14.6 million since its initial public offering in October, with 1 IMPT currently trading at $0.023.
Due to its extraordinary success, IMPT.io, a groundbreaking platform for carbon offsetting and carbon credits trading, will end its token presale on December 11th.
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.
