Bitcoin Recovers Above $122,000 After Tuesday’s Drop
Bitcoin (BTC) bounced back on Wednesday, trading above $122,000. This came after a sharp fall the day before. Altcoins like Ethereum (ETH) and Ripple (XRP) stayed above key support levels. Traders hope to regain losses from Tuesday’s dip.
Market Data Shows Mixed Signals for Bitcoin and Altcoins
Bitcoin’s futures Open Interest (OI) dropped to $90.17 billion on Wednesday from $94.12 billion on Tuesday. OI measures the total value of active futures contracts. A decline suggests some traders are closing long positions, which may signal less confidence in Bitcoin’s rise.
Ethereum saw strong institutional demand. Spot ETFs for ETH gained $421 million on Tuesday. According to SoSoValue, ETH ETFs had net inflows for seven days in a row. The nine US ETH ETFs now hold $15 billion in total inflows and $30.86 billion in net assets.
XRP faced heavy losses on Tuesday. Long position liquidations hit $21.17 million, while shorts lost $2.17 million. By Wednesday, long liquidations reached $3.38 million, compared to $178,050 in short losses. This shows traders were highly leveraged, expecting XRP to break above $3.00.
Technical Outlook: Bitcoin and Altcoins Eye Short-Term Gains
Bitcoin’s technical indicators support a short-term recovery. The MACD has shown a buy signal since October 1. The RSI rose above 63, indicating growing buying pressure. This may help Bitcoin move toward its record high of $126,199.
Ethereum holds above $4,400 support despite a recent pullback. The MACD on the daily chart remains bullish since October 7. The RSI rebounded to 54, supporting a positive outlook. Growing institutional interest could push ETH toward $5,000.
XRP reclaimed support at its 100-day EMA of $2.85. The RSI is rising but needs to move above the midline to confirm gains. The 50-day EMA at $2.93 may slow recovery. If XRP falls below $2.85, it could drop toward the 200-day EMA at $2.64.
