DeFi attacks are on the rise — Will the industry be able to stem the tide?

Bitcoin Struggles To Breach $40,000 Level, Down 4% In Last 24 Hours

Bitcoin isn’t the king of cryptocurrency for nothing. Most major cryptocurrencies have dipped incredibly low on Saturday, and that includes Bitcoin (BTC) but it doesn’t seem to budge. Bitcoin was trading at $39,510 late Friday, down 4%, based on charts by Coingecko, which signals dangerous waters in trading. Traders have incurred monumental losses in equity with this trend. It’s a consolation though that right now Bitcoin and other cryptocurrencies are frequently linked to stocks in terms of volatility in interest rates and market values. Suggested Reading | Metaverse Tokens On Overdrive, Outpace Bitcoin And Ethereum The Big 4% Dip for Bitcoin Four percent might be too small to matter but it does to Bitcoin and all other cryptocurrencies. With that big dip, investors and traders are increasingly aware of the risks and have decided to wait on the sidelines and see what happens next rather than risk severe losses along the way. However, not taking action at the right time can hurt and decrease market returns. Altcoins also went further down compared to Bitcoin. Fundamentally, it is typical for altcoins to underperform when pitted with other cryptocurrencies especially BTC because it has a higher risk profile in comparison to BTC. Despite Dip, Bitcoin Remains Stable On a more positive note, technical indicators have shown that Bitcoin is meant to be more stable at $38,500 even with the reduced price momentum. Traders are always on the lookout for unexpected spikes in prices so the downtrend with BTC may make it entirely painstaking for options traders to generate profit in these erratic price swings. BTC total market cap at $755. billion on the weekend chart | Source: TradingView.com Suggested Reading | Move Over Bitcoin – Is Shiba Inu The Next Crypto Gold? Current trends circling the crypto and metaverse worlds can greatly impact how traders behave. For instance, when BitMEX co-founder Arthur Hayes said that there is an impending BTC price crash looking at around $30,000, there followed traders selling their BTC. This caused traders to sell their May and June option calls like crazy causing the risk reversals to drop from -6% to about -10%  for both Bitcoin and Ethereum. Still A Bullish Trend With Bitcoin’s lowest low registering the past couple of days, this also highlights the minimized bearish sentiment on the side of options traders. Traders being cautious at this point in time are fairly predictable. Overall, the global cryptocurrency market trading activities have been significantly reduced at $1.88 with very minimal gains seen in the last 24 hours. Even so, the total trading volume rose to around 18%. While the very strict monetary policy has negatively impacted speculative assets like cryptocurrencies and stocks, the indicators clearly show that it will stay bullish for a little while. Featured image from EPA-EFE, chart from TradingView.com

LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday

Panic struck the crypto market last week when Bitcoin broke below support, stablecoins unpegged from the dollar, and LUNA dropped to zero. The bloody aftermath has left cryptocurrencies as a whole more oversold than the Black Thursday COVID collapse. Here is a closer look at the historically oversold conditions in crypto. Total Crypto Market More Oversold Than Black Thursday It was a bloodbath in Bitcoin, apocalypse in altcoins. Even stablecoins pegged to the price of the almighty dollar were completely shaken. A nefarious actor or group of actors strategically attacked the dollar-peg of the UST stablecoin, causing a domino effect of algorithmically driven liquidation of reserve assets that included BTC. Related Reading | This Expanding Triangle Pattern Could Be The Last Hope For Bitcoin Bulls Bitcoin plunged through support and many altcoins reached a total drawdown of 80 to 90% or more. LUNA, an asset tied to UST, fell all the way to zero. Billions were wiped out from the total crypto market cap. If there was ever a time to be doubtful about the future of crypto, it might be now. However, market veterans recommend when things become doubtful, you zoom out. The weekly RSI is more oversold than on Black Thursday | Source: CRYPTOCAP-TOTAL on TradingView.com “When in doubt, zoom out,” holds true in this case. Comparing the recent crypto selloff with Black Thursday, the weekly RSI has reached even more extreme oversold levels. Meanwhile, the Black Thursday candle recorded a 50% drawdown, and the latest correction by contrast barely produced 30%. By definition, a hidden bullish divergence occurs when an asset’s price sets a higher low, yet the indicator sets a lower low. This often indicates continuation ahead.   Elliott Wave Theory suggest the cycle isn’t complete  | Source: CRYPTOCAP-TOTAL on TradingView.com Could Another 45% Collapse Still Be Ahead? Elliott Wave Theory could provide clues as to what continuation might look like ahead. The total crypto market cap is also trading within a parallel channel, of which it just touched the bottom of. The upper boundary of the channel is roughly $10 trillion USD. Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season While that fact might be the hope bulls need right now, bears still could have the last laugh. The weekly RSI has now reached the lowest level since the bear market bottom and the fourth lowest in its history on TradingView. Only three other times has the total crypto market cap been more oversold  | Source: CRYPTOCAP-TOTAL on TradingView.com Of the three previous lows set on the weekly RSI, two were bear market bottoms. The remaining low, however, was followed by another 45% plunge to the final bottom. Another 45% drop from here would take the total crypto market cap back to around $600 billion, or below the January 2018 cycle peak. Simply put, risk is still extremely high, but as oversold conditions increase, so does the potential for reward. Act accordingly. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Blockchain analytics provider Nansen integrates and invests in DeFi data app APY.vision 

Nansen, a  blockchain data analytics platform, announced today that it will be participating in an ongoing seed round for leading DeFi data platform APY.vision. To coincide with its seed investment, Nansen will also be integrating APY.vision, the first time Nansen has incorporated outside data into its platform. APY.vision is an analytics platform that provides clarity […]

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