Bitcoin and Crypto Market Update
Bitcoin (BTC) fell close to $121,000 on Thursday amid a broad market pullback. Other major cryptocurrencies like Ethereum (ETH) and Ripple (XRP) also dropped, losing some gains from the previous day’s recovery. The Crypto Fear & Greed Index rose to 70, showing strong greed in the market after Bitcoin hit a record $126,199 on Monday. This greed signals investor excitement but also raises the risk of profit-taking.
Bitcoin ETF Inflows and Market Support
Bitcoin spot ETFs saw eight straight days of inflows, adding $441 million on Wednesday. Total ETF inflows now approach $63 billion, with assets reaching $168 billion. These ETFs help drive Bitcoin’s price by attracting institutional investors. Continued inflows could boost Bitcoin back toward its all-time high.
Ethereum ETFs in the US had $69 million in inflows on Wednesday, down from $421 million the day before. Total Ethereum ETF inflows are about $15.1 billion, with assets near $31.17 billion.
Bitcoin tested support near $121,000 during the market correction. The Relative Strength Index (RSI) dropped to 60, showing weaker buying momentum. The $120,000 level is a key psychological support. If Bitcoin holds this level, it may resume its upward trend. If it breaks below, a deeper correction toward the 50-day moving average at $116,006 is possible. Other support levels include the 100-day EMA at $113,528 and the 200-day EMA at $107,760.
Altcoins: Ethereum and XRP Under Pressure
Ethereum is near its 50-day EMA support at $4,292. The RSI at 48 shows short-term bearish pressure. If RSI falls below 50, Ethereum could drop toward $4,000. The MACD indicator still shows a buy signal but is weakening, suggesting caution for traders.
XRP faces bearish pressure with RSI falling to 42 from 57 earlier this month. It dropped below the 100-day EMA at $2.85. The MACD shows a sell signal, indicating possible further declines. Support levels to watch are $2.70 and the 200-day EMA at $2.64.
