The cryptocurrency market showed broad strength on Thursday, with major digital assets posting significant gains. Bitcoin broke through a key resistance level, while Ethereum and XRP continued their upward trajectories amid improving market sentiment.
Key Market Movements
- Bitcoin surpassed the critical $109,000 resistance level, approaching the $110,000 mark.
- Ethereum reclaimed the $2,600 level, supported by growing activity in its derivatives markets.
- XRP demonstrated renewed bullish structure, breaking above key moving averages around $2.20.
This positive price action was largely fueled by stable institutional demand and a significant inflow into US-based spot Bitcoin ETFs.
Market Overview: Stable Institutional Interest and Demand
Bitcoin's recovery has been notably supported by consistent institutional demand, which has helped the asset rebound impressively from its dip to $98,241 in June. That dip was triggered by heightened geopolitical tensions.
Data from analytics firms indicates that selling pressure from large holders, often called "whales," and institutional investors has subsided since April. This shift points to a stable risk-on sentiment among major market participants following the rate-induced price correction earlier in the year.
A recent report from Glassnode underscores the substantial value creation happening within the Bitcoin ecosystem. It highlights that the total unrealized profit across the network has reached approximately $1.2 trillion. While this is a sign of a healthy and profitable market, it also presents a potential risk; a shift in sentiment could trigger widespread selling as investors look to realize these gains.
Data Spotlight: Bitcoin Spot ETF Inflows Continue
A major driver behind the current market optimism is the sustained institutional interest captured by Spot Bitcoin Exchange Traded Funds (ETFs). On Wednesday, these ETFs recorded a substantial total net inflow of approximately $408 million.
Crucially, none of the 12 US-approved ETFs experienced net outflows, signaling uniform confidence across different financial products. Fidelity's FBTC led the pack with the highest single-day net inflow, averaging around $184 million.
The collective net asset value of these Spot Bitcoin ETFs is now nearing $137 billion, with a historical cumulative net inflow of about $49 billion. This massive influx of capital from traditional finance provides a strong foundation for Bitcoin's price.
Today's Chart: Bitcoin Breaks Out with ATH in Sight
Bitcoin's price is extending its upward move toward the key psychological resistance at $110,000. The daily chart confirms a decisive break above a critical descending trendline resistance, a technical development that typically boosts bullish sentiment and invites more buyers into the market.
Momentum indicators are flashing bullish signals. The Relative Strength Index (RSI) is trending upward above 60, a strong recovery from its low of 38 on June 22nd. This move indicates strengthening bullish momentum.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator is also providing a buy signal. This occurs when the fast (blue) MACD line crosses above the slow (red) signal line. With the MACD holding above its baseline and the green histogram bars expanding, the path of least resistance remains to the upside.
Traders should watch for potential resistance near the $110,530 level, an area that previously capped the rally in June. A decisive break above this barrier could set the stage for Bitcoin to challenge its all-time high and potentially set a new record.
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Altcoin Update: Ethereum and XRP Sustain Their Rallies
Ethereum (ETH) Technical Outlook
Ethereum price continued its climb, trading around $2,601 at the time of writing. The largest smart contract token by market capitalization is holding firmly above its key moving averages, including the 100-day Exponential Moving Average (EMA) at $2,388, the 50-day EMA at $2,440, and the 200-day EMA at $2,470. This consolidated position above multiple support levels reinforces its bullish structure.
The RSI is trending higher at 57, rebounding from a low near 37, which highlights strong bullish control. For Ethereum to stabilize its uptrend, a daily close above the recently reclaimed $2,600 support level is crucial. A confirmed buy signal on the MACD indicator would make the asset even more attractive to traders. Key resistance areas to watch are located at $2,735 and $2,882, levels that were tested in May and June, respectively.
Ripple (XRP) Price Action
XRP bulls are quickly approaching a major descending trendline resistance on the daily chart. This move follows a resumption of the uptrend after the price successfully tested support at $1.90 on June 22nd.
Crucially, XRP price is sustaining above both the 50-day EMA at $2.21 and the 100-day EMA at $2.22. Technical signals are aligning bullishly: the RSI is pointing upward above its midline, validating the strength of the current trend, while a buy signal from the MACD indicator encourages traders to increase their exposure to XRP.
However, traders should manage expectations, as XRP remains below its significant trendline resistance. A shift in broader market sentiment could prompt risk-off behavior, leading to selling pressure. On the downside, the 100-day EMA ($2.20), 50-day EMA ($2.21), and the 200-day EMA ($2.10) are well-positioned to act as support and absorb any selling pressure if a pullback occurs.
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Frequently Asked Questions
How do new token launches and airdrops affect crypto prices?
Token launches, such as the ARB airdrop from Arbitrum or the OP airdrop from Optimism, can significantly impact market dynamics. They generate excitement and increase demand as market participants seek to acquire the new asset. Furthermore, listing on major crypto exchanges deepens the asset's liquidity and introduces it to a new pool of investors. This process of increasing adoption and accessibility is generally considered beneficial for a digital asset's value.
What is the market impact of a major crypto hack or exploit?
A hack is an event where attackers drain a large amount of assets from a DeFi bridge, an exchange's hot wallet, or another crypto platform by exploiting a vulnerability. The perpetrators typically transfer these stolen funds out of the targeted platform to eventually sell or swap them for other cryptocurrencies or stablecoins. Such events often trigger mass panic and a loss of confidence, leading to sharp selling of the affected assets and sometimes causing contagion across the broader market.
How do macroeconomic events like Fed interest rate decisions influence crypto?
Macroeconomic events, particularly US Federal Reserve decisions on interest rates, influence crypto assets primarily through their direct impact on the US Dollar. Rising interest rates typically strengthen the dollar and make dollar-denominated, riskier assets like cryptocurrencies less attractive, negatively impacting Bitcoin and altcoin prices. Conversely, a falling US Dollar Index (DXY) makes leveraged and risk-on trades cheaper, which often provides a tailwind for crypto prices.
Why is the Bitcoin halving considered a bullish event?
The halving is typically considered a bullish fundamental event because it cuts the block reward for miners in half, effectively reducing the rate at which new Bitcoin is introduced to the market (its new supply). Assuming demand remains constant or increases, a reduction in new supply creates upward pressure on the price. This supply shock effect has been observed historically in previous Bitcoin halving cycles and is also seen in other mining-based assets like Litecoin.