Bitcoin has recently fallen below the $117,000 mark, signaling a return to a more stable or sideways price action. This decline comes in the wake of the U.S. Federal Reserve’s recent 25-basis-point interest rate cut, which had initially sparked some enthusiasm in financial markets. The current price point reflects a cautious sentiment among traders, although analysts suggest that the current accumulation phase might precede an upward movement. If Bitcoin can rise above the key resistance level of $120,000, it may pave the way for another surge toward its recent all-time high of $124,474 set on August 14.
A noteworthy detail contributing to this market sentiment is the growth in Coinbase reserves, which now sit at $112 billion—a peak not seen since November 2021, during the last major bull cycle. This increase signals a growing confidence in the cryptocurrency market from institutional and retail investors alike. According to data analysis from CryptoOnchain, rising exchange reserves often precede bullish price movements and higher liquidity, suggesting that the market could soon enter a new phase of demand and accumulation.
In the world of Ethereum, the situation appears mixed. While the cryptocurrency fell below $4,500 following a day of notable ETF inflows of $163 million, this was seen as a turnaround from the previous day’s outflows of $57 million. Institutional interest remains robust, even as Ethereum’s price fluctuates. Despite the downward trend, the $4,500 level is currently acting as a support point. Analysts suggest that failure to maintain this level could bring the price down toward the 50-day EMA of $4,241, with further declines potentially pushing it below $4,000.
Turning to XRP, retail interest remains strong, even as the currency itself dipped to around $3.00. Recent data shows that XRP futures open interest has grown to an average of $8.96 billion, up from $7.37 billion just days prior. This indicates that more investors are betting on XRP’s recovery potential, despite the current price dip. Nonetheless, traders are watching the $3.00 short-term support closely; if this fails, downward pressure could lead to retests of the 50-day EMA at $2.95 and the 100-day EMA at $2.83.
From a technical analysis standpoint, Bitcoin has maintained a buy signal from the Moving Average Convergence Divergence (MACD) indicator since early September, indicating potential bullish momentum. The Relative Strength Index (RSI) is currently stabilizing at around 60, which may encourage investors to seek opportunities for increased exposure. Conversely, the RSI for Ethereum and XRP is falling toward midline support levels, indicating waning bullish momentum in those markets.
Whether the current dynamics will shift back toward bullish territory remains a critical question for investors across the cryptocurrency landscape. A closing price above $117,000 for Bitcoin would be seen as a strong indication of recovery potential, while any significant escapes below key support levels for Ethereum and XRP could further exacerbate bearish sentiments.
