Bitcoin has seen a notable resurgence, surpassing the $116,000 mark earlier in the day before slightly retreating to hover around $115,000. This upward momentum may be attributed to growing demand from significant holders, known as “whales,” who possess between 100 and 1,000 BTC. Over the past week, these whales have collectively accumulated over 65,000 BTC, bringing their total holdings to approximately 3.65 million BTC, according to data from XWIN Research Japan.
The current market conditions have seen Bitcoin experiencing a shift in sentiment, amplified by substantial net outflows from exchanges. This indicates that investors are moving their holdings into cold storage rather than keeping them liquid for trading. Such behavior could potentially set the stage for a supply squeeze, which historically results in higher prices. As institutional demand for Bitcoin spot Exchange Traded Funds (ETFs) gains traction, the total ETF inflows have reached $1.7 billion this week, with $553 million recorded on Thursday alone.
Ethereum, the leading smart contract platform, has managed to maintain its recovery above the $4,500 mark. Market enthusiasm is aimed toward its previous record high of $4,956, achieved on August 24. Ethereum spot ETFs in the U.S. have reported three consecutive days of inflows, with Thursday’s figures showing $113 million in new investments. This has contributed to a cumulative net inflow of $12.96 billion and total net assets of $28.51 billion.
Ripple’s XRP has also made headlines by breaking above a three-month descending trendline, reaffirming its recovery trajectory. The growing interest in XRP is evidenced by an increase in futures Open Interest (OI), which averaged $8.51 billion on Thursday, up from $7.37 billion over the weekend. This surge signals investor confidence in XRP’s ability to reclaim its record high of $3.66, set in July.
Looking closely at Bitcoin’s price action, the cryptocurrency reached an intraday peak of $116,331 but has since corrected. Key support levels have been established, including the 100-day Exponential Moving Average (EMA) at $111,012 and the 50-day EMA at $113,117, indicating potential bullish sentiment. The Moving Average Convergence Divergence (MACD) indicator supports this outlook with a sustained buy signal, while the Relative Strength Index (RSI) shows steady momentum at 57.
For Ethereum, the daily chart reflects a bullish short-term outlook, with an RSI reading of 58, indicating increasing buying pressure. Investors are observing the MACD for signals of upward momentum, particularly if the blue line crosses above the red. Should profit-taking occur, there may be a reversal, with support levels at the 50-day EMA of $4,126 and the 100-day EMA of $3,680.
XRP continues on its upward path, buoyed by its break above critical moving averages and a sustained buy signal from the MACD. This positions XRP favorably for a potential breakout toward resistance at $3.35 and potentially toward its prior peak of $3.66.
Overall, while sentiment in the cryptocurrency market remains cautiously optimistic, traders are advised to remain vigilant as short-term corrections and profit-taking may pose challenges to ongoing recovery trends.
