Daily Crypto Signals: Bitcoin Eyes $126K Breakout, XRP Targets $3 Amid Record Exchange Outflows
Bitcoin is consolidating above $115,000 as analysts identify $116,000 as the critical resistance level that could trigger a surge past $126K
Quick overview
- Bitcoin is consolidating above $115,000, with $116,000 identified as a critical resistance level for a potential surge past $126,000.
- XRP is experiencing bullish momentum following Evernorth's $1 billion accumulation, with analysts predicting a possible rally to between $2.75 and $3.00.
- Crypto investment products saw $921 million in inflows last week, reflecting improved investor confidence amid lower-than-expected US inflation data.
- On-chain analytics indicate a healthy recovery for Bitcoin, with 83.6% of its supply in profit, suggesting strong market momentum.
Bitcoin BTC/USD is consolidating above $115,000 as analysts identify $116,000 as the critical resistance level that could trigger a surge past $126,000, while XRP XRP/USD shows bullish momentum following Evernorth’s $1 billion accumulation and record exchange withdrawals. Meanwhile, crypto investment products saw $921 million in inflows last week as investor confidence improved following lower-than-expected US inflation data.
Crypto Market Developments
The cryptocurrency market is picking up speed again. Last week, $921 million came in via investment goods, entirely offsetting the $513 million that went out the week before. The rise happened after the Consumer Price Index indicated a 0.3% rise in September and an annual inflation rate of 3%, both of which were lower than what the market had expected. James Butterfill, CoinShares’ head of research, said that the positive trend was due to renewed faith in more US rate reduction. However, the prolonged US government shutdown has made it hard for investors to get clear information about monetary policy.
Michael Selig confirmed his candidacy to lead the Commodity Futures Trading Commission with an emphasis on crypto policies. However, the appointment still needs to be approved by the Senate. At the same time, leaders in Australia’s crypto business, like Caroline Bowler of BTC Markets, voiced reservations about the government’s proposed digital asset legislation. They said they favor regulation but that “structure must come with clarity.” Swyftx, an exchange, warned that the regulations could give regulators too much freedom to make big changes without giving enough direction on important operational issues.
Bitcoin Needs to Break $116,000 Resistance for an Uptrend
Bitcoin is getting ready for a big move toward new all-time highs. Analyst Donny Dicey says that $116,000 is the key barrier level that BTC has to break over in order to confirm a breakout path above $126,000. The cryptocurrency hit an all-time high of $126,000 on October 6, but then fell back to roughly $115,000. It is now holding steady above the $109,000 support level. Bitcoin has broken over its 50-day and 100-day moving averages, according to technical analysis. The next important test is at $117,500, which is a historical resistance zone that might confirm the move into $120,000-$125,000.
On-chain analytics significantly corroborate the bullish narrative. Bitcoin’s supply in profit has risen to 83.6%, which means that a growing number of holders are resting on unrealized gains. According to analyst Darkfost, this level indicates that momentum is rebuilding in a healthy way during what seems like a mid-cycle recovery period. Historically, the indicator bottoms out around 75% during accumulation zones and goes beyond 95% during overheated market situations. Bitcoin brought in $931 million last week, almost completely making up for the $1 billion that left the week before. It has stayed stable above January highs, even though the global economy is still uncertain. This is what economists call “unbreakable” strength.
XRP Set for 12-18% Rally to $3
XRP (XRP) is showing a lot of bullish potential even if it ended October down more than 7.5%. This was after a huge 109% rise from mid-October lows, which was made possible by Evernorth’s $1 billion treasury purchase. As of Monday, Evernorth held more than 388.71 million XRP, which is worth over $1.02 billion. Technical analysis shows that XRP’s price behavior is similar to a well-known fractal between April and June 2025, when the cryptocurrency bounced off its long-term ascending trendline support and then moved up into important Fibonacci levels between $3.20 and $3.66. Analysts say this pattern might happen again in November, with initial goals of $2.77 and the possibility of a 12% to 18% rise toward the $2.75 to $3.00 range.
On-chain data gives strong evidence for a positive trend, with XRP’s exchange net position change dropping by 2.78 million on October 19 and 20, the lowest amount ever recorded by Glassnode. This huge drop happened right after Evernorth’s statement, which suggests that big holders are shifting tokens to cold storage and lessening immediate sell-side pressure. Also, XRP’s biggest liquidity cluster right now is around $2.68, where about $15.91 million in leveraged positions are at risk of being liquidated. This could lead to a short squeeze that pushes the token toward technical targets between $2.75 and $3.00.
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