🧘‍♂️ALERT: $100 Million Stolen

Dear Meditators

We wrap up the week with multiple important updates. From technical analysis to hacks and new bridges, the space continues to thrive and fascinate.

Today’s Meditations: 

• Bitcoin Technical Analysis
• Not So Harmonious
• New Bridges

⏰ Top Headlines

• Eminem and Snoop Dogg turn into BAYC chars in new music video
• Moody’s downgrades Coinbase due to bear market: Warns it may not be the last
• How the BlockFi bailout could signal a change for the crypto industry
• Harmony’s $100 million hacker took control of its multi-signature wallet, analysts say

? Ethere-up Please

ETH/USD

The macro sentiment seems to be somewhat restored and the worst of the drop might be behind us. However, from a technical analysis perspective, we wait for a break of either $900 support or $1250 resistance in order to make our next bet.

The next key support and resistance after a break-out of that range are highlighted below.

Range: $900 – $1250

Next Support: $700

Next Resistance: $1700

?Hack Harms Many

News of another hack spread across Twitter last night, stymying any price action inspired positive sentiment amongst Harmony holders.

• Harmony Protocol, a layer 1 network launched in 2019, posted on its Twitter account yesterday evening that a theft occurred on its Horizon Bridge.
• Horizon Bridge is one of Harmony’s most popular bridges, featuring support for Binance Smart Chain and Ethereum cross-chain coin migration.
• The theft took place yesterday morning and totaled approximately $100 million in ETH.
• Harmony has published the wallet address of the culprit on Twitter, notified exchanges, and paused the Horizon bridge to prevent transactions.

The Horizon bridge possesses an audit by Peckshield, one of the most respected names in blockchain code auditing. Details are still sparse as Harmony works to uncover more information in its investigation. Even though we look for signs of security like team transparency and code audits, they aren’t infallible indicators of risk. Along with practicing good security habits, like due diligence, consider implementing diversification as a takeaway from yet another cautionary tale.

Having all your eggs in one basket is a dangerous practice to adopt. Keep up to speed with developing announcements from the Harmony team on Twitter. 

? Avalanche’s Golden Gate 

Avalanche has released a bridge directly to the bitcoin network. 

• The direct bridge to the Bitcoin network was made possible by a feature of the Ava Labs browser-based Web3 wallet (Core).
• The bridge works by tokenizing Bitcoin as an Avalanche-based token called BTC.b, which can then be used in Avalanche DeFi applications.
• This bridging process is similar to wrapping on Ethereum, but unlike tokenized bitcoin solutions on Ethereum (WBTC), Ava Labs claims their process is non-custodial. When using WBTC on Ethereum, the bitcoin that you wrap is held in a centrally controlled smart contract, a layer of risk that often garners criticism.
• A Bitcoin pool on Platypus with $11.7 million in TVL offers yields from 23.72% to 62.84%.
• A BTC.b to AVAX pool on Trader Joe is offering yields of 17.5%.
• The multichain bridge will one day give Bitcoin users access to the Avalanche subnets, such as Defi Kingdoms or Swimmer.

Writers at Coindesk noted that AVAX soared 7.4% after the announcement. Still, Avalanche is no stranger to the woes that have befallen the entire market, losing more than $11 billion in TVL since December. Ava Labs release of the native bitcoin bridge and user-friendly products like the Core wallet are a testament to the term commonly used by developers in a bear market: “keep building.”

? Watch

• Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.

? Read

• Read the following Technical Analysis guides for more insight:

1. Moving Averages 
2. Fibonacci Retracement  
3. Volume and Open Interest  

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??‍♂️✍️ Stories in this newsletter were written by D. Beverly, Kyle F., Max P., Nick T., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. 

Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets.