BTC Makes a Much Needed Recovery; Mirror Protocol Faces Another Exploit

Chart of the Day 

The broader crypto market saw a much-needed recovery wave on Monday. BTC posted the largest daily gain since early March, one day after it had completed a record nine-week losing streak. As of the time of writing, the largest cryptocurrency by market cap rose by roughly 4.5% in the last 24 hours, and is currently trading above the $31K handle. Should a clear move be made above the $32.2K resistance level, it may accelerate BTC's upside momentum. Despite the possibility of BTC moving to correct its recent gains, it will likely remain well-bid above the $30K pivot level with a main support formation near the $30.8K level. 

The on-chain URPD saw a sizeable reallocation of 1.5 million BTC from those who bought in between the $42K to $49K range, and the current range of $26.7K to $33K. On-chain price walls have shifted accordingly, with more solid support levels forming below the $30K handle. Meanwhile, the HODL-er cohort, which has remained relatively insensitive to price drops, still dominates the BTC investor profile. 

In a similar vein, ETH is a breath away from reclaiming the $2,000 level after posting a 6.4% gain from 24 hours. Most major altcoins are also still in the green, with ADA leading the recovery after seeing a 24% rise within a similar timeframe. 

Talk of the Town 

Mirror Protocol, a DeFi application on the Terra blockchain, has allegedly fallen victim to yet another exploit, according to a post on the Terra Research Forum by the pseudonymous "Mirroruser". As of the time of writing, approximately $2 million has allegedly been drained. Should the bug in the LUNC pricing oracle remain unfixed, it could threaten to drain all liquidity pools on Mirror. The news was amplified on Twitter by a Terra community member and analyst Fatman, who has recently discovered a $90 million exploit on Mirror that had gone unnoticed for seven months. The exploit, which happened in October last year,  was caused by a coding bug that allowed the perpetrator to withdraw funds without any authorization.