46. 30/05/2019 21:29
Bitcoin Remains on Hunt for $9K After Defense of Key Price Support
  • Bitcoin bounced up from $8,420 on Wednesday, forming a bullish higher low. The 4-hour chart now shows a bull flag breakout. As a result, a rally to $9,000 looks possible.
  • A pennant breakout confirmed on Sunday has already created room for a rally to $10,000. On the way higher, BTC may face selling pressure near the key Fibonacci retracement level of $9,442.
  • The short-term bullish case would weaken if BTC finds acceptance below the former resistance-turned-support at $8,390. A bearish volume divergence on the daily chart does indicate scope for a price pullback.

Bitcoin (BTC) remains on the hunt for $9,000, having established a bullish pattern at key price support in the last 24 hours.

The leading cryptocurrency by market capitalization is currently trading at $8,730 on Bitstamp, representing a 0.8 percent gain on the day. Prices hit a high of $8,785 earlier today.

Trading kicked off on a pessimistic note on Wednesday, with prices falling below the former resistance-turned-support of $8,500 (July 2018 high) in the Asian trading hours.

However, the drop to levels close to the May 16 high of $8,390 – also a former hurdle-turned-support – was short-lived and prices bounced back to $8,663 by UTC close, according to Bitstamp data.

Essentially, BTC established a bullish higher-low pattern in the key support zone yesterday, strengthening the bullish case put put forward by Sunday’s pennant breakout.

The path of least resistance, therefore, is to the higher side. Even so, buyers need to observe caution, as the cryptocurrency has already rallied more than 60 percent this month. Sudden price pullbacks are usually seen after such stellar rallies.

4-hour chart

BTC witnessed a bull flag breakout – a continuation pattern known to accelerate the preceding bullish move – on the 4-hour chart earlier today, creating room for a rally to $9,940 (target as per the measured move method).

The pennant breakout confirmed on Sunday has already opened the doors to $10,000.

On the way higher, BTC may face resistance at  $9,442 – the 38.2 percent Fibonacci retracement of the drop from the December 2017 high to December 2018 low.

It is worth noting that BTC created a doji candle with a long upper shadow – a sign of buyer exhaustion – in the four hours to 08:00 UTC, marking a weak follow-through to the bull flag breakout.

Should the doji candle’s high of $8,785 prove a tough nut to crack over the next few hours, a price pullback could be seen.

The case for a rise to $9,000, however, would weaken only if the newly established higher low at $8,420 is breached.

Daily chart

The daily trading volume bars continue to produce lower highs, contradicting the higher highs on price.

That bearish volume divergence takes the shine off the pennant breakout confirmed Sunday and indicates that the rally to $9,000 or above could be short-lived or may be preceded by a correction to $8,000.

Trading volumes need to pick up for a sustained move above $9,000.

47. 28/05/2019 09:04
Researcher Discovers Serious Vulnerability in Paper Crypto Wallet Site

A security researcher from MyCrypto.com, Harry Denley, has posted a detailed – and damning – analysis of paper wallet site WalletGenerator.net.

The core of the analysis hinges on WalletGenerator’s original open-source code, available here. Until August 17, 2018 the online code matched the open-source code and the entire project generated wallets using a client-side technique that took in real random entropy and produced a unique wallet. But sometime after that date the two sets of code stopped matching.

The result? The very real possibility that WalletGenerator is giving the same keys to multiple users. To test this, MyCrypto’s researcher ran the generator in bulk and got some odd results.

“Approaching from a different angle, we then used the “Bulk Wallet” generator to generate 1,000 keys. In the non-malicious, GitHub version, we are given 1,000 unique keys, as expected.

However, using WalletGenerator.net at various times between May 18, 2019 — May 23, 2019, we would only get 120 unique keys per session. Refreshing our browser, switching VPN locations, or having a different party perform the same test would result in a different set of 120 keys being generated.”

While the odd behavior was not found as of last Friday (May 24), it could be return at any time.

“We’re still considering this highly suspect and still recommending users who generated public / private keypairs after August 17, 2018, to move their funds,” the researcher says. “We do not recommend using WalletGenerator.net moving forward, even if the code at this very moment is not vulnerable.”

You can read the entire report here, but Denley recommends moving funds off of your WalletGenerator-based paper wallets. As there is no clear way to contact the “two random guy [sic] having fun with a side project” who apparently run the site, we can safely recommend you avoid the site altogether.

48. 27/05/2019 09:07
Bitcoin Hits New 2019 High Above $8,900

Bitcoin’s price has once again set a new high for 2019 after breaking out from a bullish pattern on the daily chart, reaching as high as $8,905 before retracing slightly.

At 19:00 UTC on May 26, the world’s largest cryptocurrency by market capitalization broke from an ascending triangle pattern on the daily chart, courtesy of being held beneath $8,250 for an extended period of time.

The move to fresh 2019 highs has come at a time when prices were beginning to creep to the downside, touching as low as $6,600 on May 17 before a large amount of buying pressure pushed prices back above $7,300 within the same day.

Since then prices have once again jumped by 22 percent, first rising above $8,500 on Sunday night in bullish fashion, then reaching over $8,700 within half an hour. It’s currently changing hands at $8,890 per CoinDesk’s price data. 

Notably, the price rally was also accompanied by a large uptick in the 24-hour trading volume, an increase of $10.3 billion was added overall, according to data from CoinMarketCap.

However, its “Real 10” volume – a metric that takes into account trading volume from exchanges reporting honest volume figures as identified in a report by Bitwise Asset Management – currently stands at $3.1 billion, according to Messari.io.

Meanwhile, other highly ranked cryptocurrencies like EOS, Ether (ETH), XRP, and litecoin (LTC) have gained between 5.3 to 5.8 percent each on a 24-hour basis, according to CoinMarketCap.

What’s more, the total market capitalization has risen to a high of $268.1 billion its highest point since August 3, 2018 while the market capitalization for altcoins is up $6 billion, a sign of continued funding and investment for cryptocurrencies overall.

Eyes are now firmly set on bitcoin’s new target along $9,650 resistance, last seen 13 months ago on April 30, 2018, signaling a very strong upward move beyond the $10,000 psychological price tag.

49. 26/05/2019 09:03
Long-Term Bitcoin Price Indicator Rises for First Time in a Year
  • Bitcoin has risen back to $8,000 with the widely tracked 200-day moving average beginning to curl upwards in favor of the bulls for the first time since May 2018. 
  • A bull flag breakout seen in the hourly chart indicates scope for a rise to $8,400. The breakout is backed by bullish readings on both the hourly and 4-hour charts. 
  • A rally to $8,400 may not be sustainable, unless the move is backed by a rise in trading volumes. The daily chart is reporting a bearish divergence of trading volumes.
  • On the downside, $7,205 is the level to beat for sellers. A UTC close below that would confirm a double-top breakdown and shift risk in favor of a slide toward $6,000.

Bitcoin (BTC) has moved back above $8,000 as a widely followed long-term indicator turns bullish for the first time in over a year. 

The world’s largest cryptocurrency by market value is currently trading at $8,020 on Bitstamp – up more than $500 in the last 24 hours. Prices hit a high of $8,032 earlier today.  

The 7 percent rise from the previous day’s low of $7,468 is noteworthy as the short-term technical charts had turned bearish earlier this week. 

For instance, bitcoin dived out of a narrowing range on Wednesday, strengthening the case for pullback to $7,200 put forward by Monday’s “hanging man” candle. 

The rise back to $8,000, therefore, could embolden buyers – more so, as the list of long-term technical indicators signaling a bull market continues to grow.

The latest to join the bandwagon is the 200-day moving average (MA) – a widely tracked barometer of long-term market trend. 

The MA shed bearish bias (flattened out) in the first half of this month and is now beginning to curl upwards, further confirming a long-term bearish-to-bullish trend change signaled by several indicators over the last few weeks. 

Bullish 200-day MA

As seen above, the 200-day MA has turned bullish for the first time since May 2018. As of writing, the average is located at $4,500.

It is worth noting that moving average studies are based on past data and tend to lag price. The 200-day MA’s bullish turn, therefore, likely reflects the recent price rally.

Hence, short-term corrective pullbacks are not ruled out. Should prices move below that MA, the long-term bullish outlook would weaken.

As for the next 24 hours, BTC could rise to $8,300, according to a bull breakout seen on the short-term technical charts.

Hourly and 4-hour charts

BTC witnessed a bull flag breakout on the hourly chart (above left) earlier today – a continuation pattern that often accelerates the preceding bullish move. The cryptocurrency, therefore, has a scope for a rise to $8,400 (target as per the measured height method).

The hourly chart also shows an upside break of the falling channel (lower highs and lower lows). 

The relative strength index (RSI) is now biased bullish above 50, having breached the descending trendline in favor of the bulls earlier this week. 

Meanwhile, on the 4-hour chart (above right), the moving average convergence divergence (MACD) histogram has crossed over to bullish territory above zero and the RSI has violated the falling trendline in favor of the bulls. 

With the odds stacked in favor of the bulls, BTC could challenge the recent high of $8,390 in the next day or two. A violation there would expose next major resistance at $8,500 (June 2018 high). 

Even so, the bulls need to observe caution, as trading volumes have dropped over the last seven days as seen in the chart below.

Daily chart

Bitcoin’s rise from last Friday’s low of $6,178 is accompanied by lower highs on the volume bars. 

That bearish divergence puts a question mark on the sustainability of recent gains and a further rise to $8,300, if any. 

That said, the case for a fall back to $6,000 would strengthen only if the price closes below $7,206, confirming a double-top breakdown, as discussed yesterday.

50. 25/05/2019 08:46
Bitcoin Cash Miners Undo Attacker’s Transactions With ‘51% Attack’

Two bitcoin cash (BCH) mining pools recently carried out what is known as a 51 percent attack on the blockchain in an apparent effort to reverse another miner’s transactions.

The move is tied to the bitcoin cash network hard fork that occurred on May 15. The two mining pools — BTC.com and BTC.top — carried out the move in order to stop the unknown miner from taking coins that they weren’t supposed to have access to in the wake of the code change. That day, an attacker took advantage of a bug unrelated to the upgrade (and subsequently patched) that caused the network to split and for miners to mine empty blocks for a brief time.

In the context of cryptocurrencies like bitcoin cash, a 51 percent attack involves an entity or group controlling a majority of the hash rate which thereby allows them to execute several things they aren’t normally allowed to do, such as attempting to rewrite the network’s transaction history.

It’s long been a controversial topic and other cryptocurrencies have suffered similar attacks due to a decline in their hash rates.

At one point BTC.top did alone control more than 50% of the power. But BTC.com and BTC.top they were able to join together to reverse the blocks of transactions. According to stats site Coin.Dance, the two mining pools currently have combined 44% of bitcoin cash hashing power.

The interesting part of this particular attack on bitcoin cash, though, is that it was arguably executed in an attempt to do something ostensibly good for the community, not to reward the attackers or to take the funds for themselves.

But not everyone in the bitcoin cash community agrees. As one bitcoin cash developer, going by the moniker Kiarahpromises, put it in an article from May 17:

“To coordinate a reorg to revert unknown’s transactions. This is a 51% attack. The absolutely worst attack possible. It’s there in the whitepaper. What about (miner and developer) decentralized and uncensorable cash? Only when convenient?”

Anatomy of an attack

The inner details of the mining pools’ attack (as well as the attack that prompted the attack) are complicated.

“Since the original split in 2017, there has been a significant number of coins accidentally sent to ‘anyone can spend’ addresses (due to [transaction] compatibility of sigs, but no #SegWit on #BCH), or possibly they’ve been replayed from #Bitcoin onto the #BCH network,” bitcoin podcast host Guy Swann said, explaining the situation on Twitter.

But once one code change was removed during bitcoin cash’s May 15 hard fork, these coins were suddenly spendable “basically handing the coins to miners,” he added.

The unknown miner attacker decided to try to take the coins. That’s when BTC.top and BTC.com swooped in to reverse those transactions.

“When the unknown miner tried to take the coins themselves, [BTC.top and BTC.com] saw & immediately decided to re-organize and remove these [transactions], in favor of their own [transactions], spending the same P2SH coins, [and] many others,” Swann went on.

But some bitcoin cash users argue this was the right thing to do.

“This is a very unfortunate situation, but it is also what proof of work actually is. The miners in this case did choose to drop prohashes block and from what I heard, it is because they deemed a transaction within it to have been invalid,” responded active bitcoin cash supporter Jonathan Silverblood.

Still, others think that this is a bad sign for bitcoin cash, arguing that the event demonstrates that the cryptocurrency is too centralized.

Yet the thread of a 51 percent attack is a concern shared across proof-of-work crypto networks (and as mentioned above, some blockchains have been left exposed due to falling hash rates). For example, half of bitcoin’s current hashing power is divided among just three mining pools according to stats website Blockchain.