Despite market concerns over another hardware wallet vulnerability incident, the Bitcoin and cryptocurrency markets are still focusing on recovering from the decline on Thursday.
Bitcoin ( BTC ) tried to avoid further declines on Friday, as the crypto market was digesting reports about a vulnerability attack on Ledger hardware wallets.
Key points:
- Bitcoin rebounded from a local low of $80,350 and once again topped $83,000 at the opening of trading on Wall Street.
- After reports that funds were stolen by users of the Ledger hardware wallet, there was no significant selling pressure in the crypto market.
- As traders focus on the weekly closing prices, BTC / USD continue to trade around $82,500.
Despite reports of the theft of Ledger, Bitcoin prices still rebounded to $83,000.
Data from TradingView shows that on Friday, BTC / USD hovered around the crucial support level of $82,500.
BTC / USD One-hour chart. Source: Cointelegraph / TradingView
After falling to $80,350 on Thursday, and with the scale of cryptocurrency liquidations exceeding $1 billion in the past 24 hours, BTC / USD has regained interest from buyers.
BTC Liquidation Heat Map. Source: CoinGlass
"This round of selling reflects an extreme imbalance in positions. In our view, there is still room for this imbalance to be further absorbed. This is also why the entire technology sector related to AI is unlikely to simply experience a sharp V-shaped rebound," the media quoted Vital Knowledge's Adam Crisafulli as saying.
Despite reports that funds of Ledger hardware wallet users have been stolen, the crypto market seems to not be affected. A post on X by Ledger acknowledged these claims and linked them to a reseller located in Southeast Asia, CryptoBillis.
Ledger suggests: "If you have already set up a Ledger device, consider transferring your assets to a new Ledger signer (using a new mnemonic phrase)."
In recent years, with manufacturer Coldcard suffering from multi-stage hacker attacks in July and August, the security of encrypted hardware wallets has come under greater scrutiny.
U.S. macro data is seen as a catalyst for the next round of fluctuations in Bitcoin
Bitcoin traders are paying increasing attention to the upcoming weekly candlestick close.
As previously reported by Cointelegraph, $82,500 remains a key level that the bulls need to recapture, having served as a support level since mid-September. This level also forms part of a potential head-and-shoulders reversal pattern, similar to one that appeared in 2023.
On Wednesday, the research department Bitfinex Alpha of the crypto exchange Bitfinex predicted that range-bound trading would continue until October 14th, which is when the new US inflation data will be released.
"Our main outlook is that before the release of the US CPI data on October 14th, prices are expected to fluctuate between $81,300 and $86,500, with multiple tests around $84,000," the institution wrote in a blog post.
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