Crypto Industry News:
Kraken Security Labs has revealed that Trezor's hardware wallets and derivatives can be hacked to extract private keys. Although the procedure is quite complicated, Kraken claims that "requires only 15 minutes of physical access to the device."
The attack requires physical intervention in Trezor's wallet by pulling out its layout and placing on a special device or soldering several critical connectors.
The Trezor system must then be connected to a "glitcher device" that would send signals at specific times. They break the built-in protection, which prevents the system memory from being read by external devices.
This trick allows the attacker to read the contents of the wallet, including the private key grain. Although the seed is encrypted with a key generated by the PIN, researchers were able to force the combination in just two minutes.
The vulnerability results from specific equipment used by Trezor, which means that the company cannot easily repair it. You will need to completely redesign the portfolio and roll back all existing models.
In the meantime, Kraken urged Trezor and KeepKey users not to allow anyone physical access to their wallet.
In a coordinated response published by Trezor, the team minimized the impact of this vulnerability. The company argued that the attack would show visible signs of tampering due to the need to open the device while noting that extremely specialized equipment was required.
Finally, the team suggested that users activate the wallet password function to protect themselves against such attacks. The password is never stored on the device because it is added to the seeds to generate a private key on the fly. Kraken also noted that this was a viable alternative, although researchers described it as "somewhat clumsy to use."
This feature also imposes significant responsibility on the user. The password must be complex enough so that it cannot be easily deciphered and forgetting it will completely block users' money.
Technical Market Overview:
The BTC/USD pair has made a possible Double Top price pattern at the level of $9,539, but is still trading inside of a consolidation zone. This behavior might indicate a counter-trend correction on the horizon and the termination of the five-wave impulsive pattern supports this view. In this case, the nearest technical supports for the bulls are seen at the levels of $9,130, $8,836 and $8,694. Please notice the momentum is clearly decreasing as well, which supports the near-term bearish outlook.
Weekly Pivot Points:
WR3 - $10,823
WR2 - $10,138
WR1 - $9,838
Weekly Pivot - $9,130
WS1 - $8,807
WS2 - $8,069
WS3 - $7,777
Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is clearly broken.
