BITCOIN TRADING SIDEWAYS BUT COULD BREAKOUT
The cryptocurrency market has been on a strange track this week, looking at the top cryptocurrency in the market, Bitcoin (BTC) its price has been bouncing around, unable to get higher than its psychological barrier of USD 12,000 but not going below USD 11,000. Today, it would appear that the price is gearing up for a second attempt at $12,000, other coins also continue to rally higher. Bitcoin (BTC) price rose during August 5, moving bullishly from the USD 11,090 to USD 11,784, however it wasn’t all good news as Bitcoin then decided to correct and retrace back to the USD 11,650 area, incidentally for the past couple days. Even today on the 6th the price is currently is back to the USD 11,676 amount after another unsuccessful attempt today to breach and the its price at the USD 12,000 level. Although all things considered it is remarkable that the price has not dropped further pointing to an obviously large support around the USD 11,500-600 range.
Surprisingly after taking into consideration, the August 2nd cryptocurrency market flash crash which saw Bitcoin (along with most other major cryptocurrencies) drop in price by USD 1,500 in minutes and liquidate nearly $1 billion did actually very little to hinder the bullish nature of the market surrounding Bitcoin, and it managed to recoup lost ground pretty quickly, looking to climb back to up USD 12,000 once again.
We at Ladarken have argued the point for quite a while now that due to more promotion in the investment and daily life concerning cryptocurrencies, as well as the big news (twitter hack) has led a large percentage of traditional investors becoming interested in cryptocurrency and accepting that it could be a suitable asset for them to invest into. These investors are also looking for higher yielding assets and these two points has led to a larger group shift into cryptocurrencies as a result.
Consequently, open interest in futures listed on major exchanges reached a new lifetime high of $5.6 billion on August 1.
Given the increased positive sentiment surrounding cryptocurrencies, the funding rates prior to the crash on August 2nd were at unsustainable levels as the funding rate for Bitcoin was hovering around 0.0721%. Furthermore, the imbalance for ETH was even worse as the funding rate was at 0.21%. However, post sell off, funding rates have stabilized despite still indicating a bullish tilt.
Altcoins currently have also managed to notched notable gains as Bitcoin spent a few days consolidating and a few managed double-digit gains as Bitcoin’s price broke out to USD 11,750.
We at Ladarken still believe that Bitcoin is a strong asset in the cryptocurrency market, holding a 61% of the entire cryptocurrency market cap. Considering the above points, it does appear that Bitcoin has enough strength to hold its current position but we will need more time to see if it can surpass the psychological barrier of USD 11,800 and make it to USD 12,000 at which time we are certain that more buyers will enter the market and push Bitcoin to new levels for this year.
ETHEREUM CLASSIC 51% ATTACKED AGAIN
Ethereum classic has yet again become the target and prey of another 51% attack on Thursday morning. This has unfortunately resulted in the reorganized of over 4000 blocks in ethereum classic.
A 51% attack basically means that once the attacker has gained over 51% of the total hashrate on the blockchain, he is able to reorganize the chains on the decentralized network at any time. In other words, they will have gained at least partial control over their target, this time being Ethereum classic. They will be capable in rewriting the chain history or even double-spending.
This time, the attack on ethereum classic was first discovered by crypto exchange Binance which took steps to halt all Ethereum classic payouts for mining also suspending Ethereum classic withdrawals and deposits. The mining pool operator Bitfly also discovered the 51% attack on Ethereum classic.
Following the attack, the developers of Ethereum classic, have since asked the community to look into the confirmation time of any transaction involving Ethereum Classic following the attack.
Additionally following the attack on the network, the Hash rate on the Ethereum Classic network also dropped by around 20 percent since the beginning of the week.
Interestingly, the new attack today followed a similar string of attacks on the Etheruem Classic blockchain between July 29th and August 1st.
It would seem the attacker paid around 17.5 BTC to gain 51 percent hash rate of the blockchain and double-spent over 800,000 ETC, valued around $5.6 million.
The details of the Thursday morning’s attack, however, is not yet known, meaning it is unclear how much the attacker spent and how many cryptos were double-spent. However, the attacker might have received $93,760 from blockchain mining rewards alone, given the $23.44 per block reward for Ethereum Classic mining.
Despite the attacks, the market value of the cryptocurrency did not take any hit as it is being traded sideways without any significant swing showing the strength of the moment of the buyers in the market, supporting the price of all the large cryptocurrencies. Though not skyrocketing like it did in the previous weeks but not collapsing in price either. We at ladarken remain bullish on the top 10 of the current highest by market cap in the crypto-market. We expect the price to continue to trade sideways for the moment before breaking out sooner or later. At least before the end of the year.