Bitcoin and Altcoins See Price Drops
Bitcoin (BTC) fell below $112,000 on Tuesday amid rising market volatility. Major altcoins like Ethereum (ETH) and Ripple (XRP) also lost value. ETH traded near $4,000, while XRP stayed below the $2.50 resistance level. Overall interest in cryptocurrencies remains low after last week’s market drop.
Several factors add pressure to the market. These include the US government shutdown, tensions between the US and China, and uncertainty about crypto performance in the fourth quarter.
Institutional Demand for Bitcoin and Ethereum ETFs Drops
Demand for Bitcoin spot ETFs has weakened recently. Data from SoSoValue shows BTC ETFs in the US had net outflows of $327 million on Monday and $4.5 million on Friday. This follows a bearish trend from last week.
Ethereum ETFs also saw net outflows, with $429 million on Monday, $175 million on Friday, and about $9 million on Thursday. If institutional risk appetite falls further, it could hurt recovery chances for BTC and ETH.
Retail interest in XRP has stabilized but remains low after last week’s large liquidations. XRP futures Open Interest is around $4.34 billion, up slightly from a four-month low of $4.2 billion on Sunday. This small rise may signal growing retail confidence.
Technical Outlook: Bitcoin and Altcoins Show Bearish Signs
Bitcoin trades below key moving averages, including the 50-day EMA at $115,473 and the 100-day EMA at $113,483. The Relative Strength Index (RSI) dropped to 42, showing increasing bearish momentum. The Moving Average Convergence Divergence (MACD) has given a sell signal since Friday, adding to selling pressure.
Support at the 200-day EMA near $108,018 is crucial to prevent further decline toward last week’s low near $102,000. If Bitcoin recovers above the 50-day and 100-day EMAs, the outlook could improve.
Ethereum also shows bearish signals. The MACD and SuperTrend indicators have issued sell signals since Friday. The RSI remains in bearish territory. ETH may drop below $4,000 unless it holds support at the 100-day EMA near $3,975. A move above the 50-day EMA at $4,240 would suggest a bullish reversal.
XRP’s recent recovery ended after testing resistance at the 200-day EMA near $2.63. It currently trades above $2.40, a short-term support level. The MACD shows a sell signal, while the RSI moves toward overbought levels. If XRP falls below $2.40, it could drop to $2.00. Holding above $2.63 could lead to a breakout past the $3.00 mark.
