Daily Crypto Signals: Bitcoin Eyes $116K, XRP Death Cross Signals Potential Correction
The cryptocurrency market faces mixed signals as Bitcoin targets key resistance levels while XRP shows concerning technical indicators amid
Quick overview
- The cryptocurrency market is experiencing mixed signals, with Bitcoin nearing key resistance levels while XRP shows bearish technical indicators.
- Institutional investors have shifted sentiment, leading to $223 million in outflows from crypto investment products after a tough stance from the Federal Reserve.
- Bitcoin is approaching the $116,000 resistance mark, with strong technical foundations and bullish sentiment despite recent market corrections.
- Ethereum's fundamentals are improving, with rising daily transactions and a potential breakout target of $9,000, while XRP faces challenges with bearish momentum indicators.
The cryptocurrency market faces mixed signals as Bitcoin BTC/USD targets key resistance levels while XRP XRP/USD shows concerning technical indicators amid renewed regulatory momentum from US agencies.
Crypto Market Developments
This week, the cryptocurrency market changed a lot as institutional investors changed their minds after the Federal Reserve took a tough position. After 15 weeks of inflows totaling $12.2 billion, crypto investment products witnessed $223 million in outflows. This was mostly because Jerome Powell said that the chances of a rate decrease in September went from 63% to 40%. Even if this was a setback, there was hope in the news about regulations. The CFTC started a “crypto sprint” initiative and worked closely with the SEC to put into action the suggestions made by President Trump’s Working Group on Digital Asset Markets. George Osborne from Coinbase, on the other hand, said that the UK is moving too slowly when it comes to regulating digital assets, especially stablecoins. He warned that Britain might slip behind in the global financial services race.
Bitcoin Ready for $115,000 Resistance?
After the weekend’s liquidation events, Bitcoin showed strength and got close to the important $116,000 resistance mark as bulls aimed for liquidity in the exchange order book. The cryptocurrency successfully filled the daily CME gap and set itself up for a possible breakout above $115,850. Traders see this as proof that the $112,000 range was a major low. Exchange data showed that bids were stacked from $113,800 to $112,000, while asks were clustered around $115,800, making it evident that bulls had to break through a strong wall of resistance.
After getting rid of too much leverage, Bitcoin’s market structure study shows that it has built strong technical foundations. Futures open interest is at its lowest level since July 10. QCP Capital, a trading company, was cautiously optimistic, saying that July’s monthly closing was the highest ever for Bitcoin and that the recent decline was more of a correction than a capitulation. Now, spot ETF flows are the main thing to watch as a sign of institutional interest, especially following Friday’s $812 million outflow, which was the second-largest daily outflow on record.
Ethereum Price Prediction: $9,000 Next Target?
The fundamental indicators for Ethereum ETH/USD are becoming more and more positive as daily transactions rise to their highest levels in over a year, reaching almost 1.7 million per day. This spike in activity shows that people are really using the network, not just trading for fun. Both active addresses and new addresses are on the rise. The EIP-1559 upgrade continues to tighten supply dynamics, keeping net emissions close to zero even if the market has been volatile lately. This creates a potent mix of rising demand and limiting supply growth.
Technical analysis shows that Ethereum may be getting ready for a big breakout. Crypto specialist Gert van Lagen points out a Descending Broadening Wedge pattern that has finished and usually resolves upward 67% of the time. The pattern suggests a possible 79% rise to $9,000, and Ethereum is currently testing old resistance as support at current levels. Adding to the bullish case, strategic reserves have grown from $200 million in April to $10 billion now, a 50x rise that shows that institutions are buying a lot of the network and are confident in its future.
XRP Technical Indicators Flashing Bearish Signs
XRP may have some problems ahead as technical indicators show warning signs after the price fell recently. The Market Value to Realized Value (MVRV) Ratio has crossed below its 200-day moving average for the second time this year, forming a death cross. This could mean that a bigger downturn is coming. This bearish crossover usually means that market sentiment is getting worse and that there may be further downside pressure for a long period.
Even while the MVRV ratio is still above the important 1.0 level, XRP’s recent technical collapse shows a worrying change in momentum. Historically, the death cross formation comes before times of higher volatility and possible price drops, especially when there is a lot of uncertainty in the market as a whole. Analysts say that this technical setting, together with the fact that the cryptocurrency hasn’t been doing as well as Bitcoin and Ethereum lately, could mean that it will stay weak for a long time until buyers come in to protect critical support levels and change the bearish crossing pattern.
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