Bitcoin (BTC) recovered much of its recent losses on Feb. 4, but concerns remained that a retest of $30,000 was incoming.
$38,600 remains focal pivot
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to $38,000 Friday, up over 2% in 24 hours. The pair saw a strong comeback overnight after suffering at the hands of United States stock sellers for two days straight.
A similar turnaround for tech stocks later on Thursday, with Amazon gaining 15%, set the stage for Bitcoin to rise in step, with BTC proponents nonetheless criticizing the over volatility of some equities.
The rebound, meanwhile, could go some way to averting a deeper retracement for Bitcoin, this nonetheless favored by Cointelegraph contributor Michaël van de Poppe as a “likely” move.
“Overall, most likely case is another sweep of the lows for Bitcoin around $30-33K and after that we create a bullish divergence and the fun continues,” he argued late Thursday.
For a paradigm shift to occur, he reiterated that the area around $38,600 should still be broken and held.
“BTC is still forming an indecision candle just below the key resistance of ~$38650,” Fellow trader and analyst Rekt Capital said as part of his latest tweet about the same level.
“That said, for the time being BTC is able to hold the top of last week’s candle as support. Technically, BTC is still inside the 28000-$38000 range until further notice.”
Pentoshi took on longer timeframes, punctuating months of cautious forecasts on BTC with fresh hope of a resurgence.
In the last two weeks, Azuki, Bored Ape Yacht Club, CloneX and Mutant Ape Yacht Club have seen significant increases in floor prices and total sales volume. Over the last seven days alone, all four projects have generated an estimated $365.9 million in value, according to data from OpenSea.
While the crypto market is steadily recovering from its lengthy bloodbath, nonfungible token (NFT) marketplaces like LooksRare and OpenSea have consistently generated about $100 million in daily total volume.
It seems that crypto Twitter is expressing their speculation on the recent market pump to blue-chip momentum while others are hopeful their holdings will make their appearance in the upcoming SuperBowl a bag pumping event for their portfolio.
While it could be a combination of the two, NFT projects have also been gaining traction with recent developments and steady leaks are driving up each collection's daily average price. Data shows that the top five collections increased their daily average price by at least 5%, with Azuki seeing a startling 55% increase in the last seven days.
Solana (SOL) became one of the worst performers among the top cryptocurrencies on Feb. 3 as traders assessed its links with the second-biggest hack to date.
$325M worth of wETH gone
SOL price dropped by 5.50% to below $96.50 as Wormhole, a bridge between Solana and Ethereum blockchains, reportedly lost $325 million worth of Wrapped Ethereum (wETH) due to a technical vulnerability.
Prior to the hack on Wednesday, SOL was trading as high as $112.
Solana security hole needs fixing asap?
Seems their consensus proceeds with only 33% of the nodes
Hard math proofs show you need 66%+ for safety. No ifs no buts
Possibilities: 1) is insecure, 2) is centralized, or 3) they've broken Computer Science (unlikely) pic.twitter.com/yqfW3QnfeK February 3, 2022
In detail, hackers tricked a series of Solana's smart contracts into signing illicit transactions digitally posing as "guardians," reported blockchain researcher Kelvin Fichter on Feb. 2, the night after the hack. He wrote:
"The attacker made it look like the guardians had signed off on a 120K deposit into Wormhole on Solana, even though they hadn't. All the attacker needed to do now was to make their "play" money real by withdrawing it back to Ethereum."
And one withdrawal of 80k ETH + 10k ETH later (everything in the bridge on Ethereum), everything was gone. February 3, 2022
Wormhole said that it would add Ethereum's native token Ether (ETH) "over the next hours" to back wETH on the Solana network on a 1:1 basis. However, the project did not clarify the source of the funds that would be used to buy ETH tokens.
Bear flag triggered
The selloff in the Solana market across the last 24 hours came closer to triggering a bearish continuation setup that may send the SOL price down by another 50%.
Dubbed "bear flag," the pattern emerges when the price consolidates sideways/higher after a strong downside move, called "flagpole." In a perfect world, the price eventually breaks below the consolidation range and falls by as much as the flagpole's length.
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