Crypto Industry News:
After the storm on the Internet caused by reports of the new Ledger Recover function, which lasted from yesterday, the company decided to respond to the controversy that has arisen around the brand. The manufacturer of hardware wallets admitted that each device has the so-called "backdoor" which, when installing the appropriate software, is able to gain access to sensitive information. Many commenters feel cheated, with some cybersecurity experts reassuring. How will Ledger's PR blight affect the future of cold wallets?
Recall: a new feature of hardware wallets called Ledger Recover allows users of devices of this manufacturer to additionally secure their digital assets by sending password fragments composed of seed phrases to third parties. This caused a storm in the crypto community, as a lot of people believed so far (based on company information) that the company had no access to the data contained on the device, apart from shipping the equipment.
Suddenly, however, it turns out that he has, or at least could have. The equipment allows you to update the software that is able to steal our confidential information. In the end, we are left with absolute trust in the manufacturer of the device.
Yesterday, the so-called The "backdoor" was an element of speculation on Reddit, but several hours ago Ledger officially confirmed: yes, the devices have the following functionality:
"Technically speaking, it is and has always been possible to write firmware to facilitate key extraction. You always trusted Ledger not to deploy such firmware, whether you knew it or not." - answered the brand's technical support department.
The statement only exacerbated the criticism leveled at the producer. Some jokers even speculate that the company could now turn off the light at the expense of cryptocurrency holders anyway, as their reputation collapsed overnight.
Technical Market Outlook:
The BTC/USD pair has retraced 61% of the last wave up and reversed lower again. Any violation of the level of $26,551 would indicate more bearish pressure with a target seen at the level of $26,600 and $25,834 (swing low). The intraday technical resistance is located at $27,453 (50 MA) and $27,670.
The bigger time frame correction is more complex and time-consuming, however the bulls are still trying to increase the volatility and break above the intraday technical resistance seen at $30,004. Only a sustained breakout above this level might change the outlook to more bullish, otherwise the market remains in corrective mode and horizontal trend to be continued. The recent 7% bounce from the lows is not enough to trigger the trend reversal.
Weekly Pivot Points:
WR3 - $28,631
WR2 - $27,903
WR1 - $27,652
Weekly Pivot - $27,176
WS1 - $26,924
WS2 - $26,445
WS3 - $25,721
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.