Bitcoin and Major Altcoins Drop Amid Market Uncertainty
Bitcoin (BTC) fell below $108,000 on Tuesday after briefly rising above $111,000 on Monday. Ethereum (ETH) also dropped below $4,000, showing weak market sentiment. Ripple (XRP) slid under $2.50 despite some signs of stability in its derivatives market. The declines come as global markets face economic uncertainty, geopolitical tensions, and the ongoing US government shutdown.
Futures Open Interest Shows Risk-Off Sentiment
Bitcoin futures Open Interest (OI) dropped about 23% to $72 billion on Tuesday. This follows a peak of $94.12 billion on October 7, according to CoinGlass data. Lower OI means fewer active futures contracts, reflecting cautious investor behavior amid trade tensions and geopolitical risks.
Ethereum futures OI also fell sharply, down 37.3% from its late August high of $70.13 billion to $44 billion. This decline shows investors reducing risk in the Ethereum market.
Meanwhile, XRP futures OI rose slightly to $3.8 billion from $3.5 billion on Sunday. Although small, this increase may signal a shift from bearish to bullish sentiment. XRP’s OI peaked at $10.94 billion after its price hit $3.66 in July, showing strong retail interest.
Technical Analysis: Bitcoin and Altcoins Face Downward Pressure
Bitcoin’s price fell below its 200-day Exponential Moving Average (EMA) at $108,062 on Tuesday. The Moving Average Convergence Divergence (MACD) indicator has shown a sell signal since October 10. The Relative Strength Index (RSI) is at 39, confirming bearish momentum. A close below the 200-day EMA could push Bitcoin toward its October low near $102,000.
Ethereum trades below its 50-day EMA ($4,165) and 100-day EMA ($3,970). Its RSI at 41 and bearish MACD suggest weakening momentum. Key support levels are $3,680 and the 200-day EMA at $3,566. A recovery above $3,970 could bring some buying interest.
XRP struggles to hold above $2.40. A Death Cross pattern, where the 50-day EMA crosses below the 100-day EMA, signals continued negative sentiment. If XRP falls below $2.40, it may test support at $2.18. A rise above the 200-day EMA at $2.61 could help start a new uptrend.
