Bitcoin Falls Below $117,000 Amid Rising Coinbase Reserves
Bitcoin (BTC) dropped below $117,000 on Friday. This follows the US Federal Reserve’s 25-basis-point interest rate cut on Wednesday. The market cooled down after the initial excitement. However, Bitcoin has been trading sideways near $117,000 in recent days. This suggests investors may be accumulating before the next price rise. A move above $120,000 could lead to new record highs above $124,474, reached on August 14.
Coinbase Reserves Reach Highest Level Since 2021
Coinbase’s reserves in US dollars have hit $112 billion. This includes Bitcoin, Ethereum (ETH), and ERC-20 stablecoins. It is the highest level since November 2021, the peak of the last bull cycle. The increase shows strong confidence from both institutional and retail investors.
CryptoOnchain, via CryptoQuant, said rising reserves often signal more demand and accumulation. These are key signs before major price moves. “Rising reserves on major exchanges like Coinbase have often coincided with higher market liquidity and bullish price momentum,” CryptoOnchain said. This four-year high may point to sustained market strength.
Ethereum and XRP Market Update
Ethereum saw $163 million in ETF inflows on Thursday, reversing $57 million in outflows from Wednesday. Institutional interest in ETH ETFs remains steady. Despite this, Ethereum fell over 1% on Friday, holding support near $4,500.
Retail demand for XRP remains strong. XRP futures open interest rose to $8.96 billion on Friday, up from $7.37 billion on Sunday. However, XRP’s price slipped 1.5%, staying just above $3.00. The rising futures interest shows investors expect XRP to continue its recovery toward the $3.66 high from July 18.
Technical Outlook for Bitcoin and Altcoins
Bitcoin’s technical indicators remain positive despite the recent dip. The MACD on the daily chart shows a buy signal since September 7. The Relative Strength Index (RSI) is stable near 60, suggesting sideways trading may continue. Traders watch for a daily close above $117,000 to confirm a move toward $120,000. Support lies at the 50-day EMA of $113,921 and the 100-day EMA of $111,715.
Ethereum’s RSI is at 54 and falling, indicating weakening momentum. A drop below $4,500 could push ETH toward the 50-day EMA at $4,241 and possibly below $4,000. XRP’s RSI is 52 and declining, with bears pressuring the price near $3.00 support. If XRP falls further, it may test the 50-day EMA at $2.95 and the 100-day EMA at $2.83. However, XRP’s MACD shows a buy signal since September 8, suggesting potential for recovery toward $3.35 resistance.
