Trusted editorial content reviewed by leading industry experts and experienced editors. Ad Disclosure
The cryptocurrency market stumbled againwith Bitcoin, Ethereum and XRP prices plunging after what gave the impression to be a promising recovery. Despite a robust set of bullish narratives coming from Interest rate cuts in October Due to increasing regulatory clarity, the momentum has weakened significantly. That brings in Question the prospects of the crypto industry before the tip of the 12 months.
Technical collapse weakens market confidence
The sharp retreat began with technical cracks that appeared on the Bitcoin, Ethereum and XRP charts. Over the past 24 hours, Bitcoin, which recently climbed above $103,000, has resumed what appears to be one other downtrend that threatens a break below $100,000.
Accordingly a current outlook from According to the DeFi report, the rally looks good on paper for Bitcoin and other top cryptocurrencies. However, technical evaluation shows that the leading cryptocurrency is currently trading below several key moving averages, including the 50-day, 100-day, and 200-day indicators. These moving averages often act as dynamic support zones, and a break below these levels tends to point that bullish momentum is fading.
Ethereum has also followed this downtrend and has fallen below its support level of $3,400. It was similar with XRP: the cryptocurrency fell below $2.3 again.
The technical deterioration in these leading assets is resulting in a more cautious stance amongst traders, lots of whom now view the market structure as vulnerable to further downside.
Declining demand and institutional outflows
Although there are still optimistic reports starting from a pro-crypto policy bias under the Trump administration to tokenization efforts by traditional financial institutions, the inflow of fresh capital has slowed.
Discover Bitcoin ETFs, Once the foremost source of institutional interest, they’ve seen significant outflows since early October, wiping out billions of dollars in value. Measured when it comes to net inflows and assets under management, Bitcoin ETFs are amongst essentially the most successful financial products in history. However, since October 10, the ETFs have seen net outflows of $1.4 billion.
Source: Glassnode
On-chain data further supports this Cooling demand narrative. Long term holders reduce their stocksand most of them are absorbed by short-term holders, in response to data from Glassnode.
Source: Glassnode
When it involves market sentiment, Optimism still dominates the conversation on social media. Michael Nadeau, founding father of The DeFi Report, noted that a big portion of investors are hopeful despite the recent downturn. Investors appear to be drawn to bullish reports and are on the lookout for something to carry on to.
At the time of writing, Bitcoin is trading at $101,720, down one other 1.3% within the last 24 hours. Ethereum can also be down about 1% over the identical period and is trading at $3,330. XRP feels the brunt of it essentially the most, is down 4.5% within the last 24 hours and is trading at $2.2
BTC price continues to crash | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com
Editorial process At Bitcoinist, the main target is on providing thoroughly researched, accurate, and unbiased content. We maintain strict sourcing standards and each page is rigorously reviewed by our team of top technology experts and experienced editors. This process ensures the integrity, relevance and value of our content to our readers.
