XRP holds above the critical $3.00 level as bulls set their sights on the all-time high of $3.66.
Bitcoin (BTC) showcases a bullish technical picture, trading slightly above $113,000 on Tuesday as cryptocurrencies generally recover. Interest in the largest crypto by market capitalisation has steadied following the drawdown in August, as optimism grows for what would be the first United States (US) Federal Reserve’s (Fed) interest rate cut this year on September 17.
Altcoins, including Ethereum (ETH) and Ripple (XRP), are edging higher, buoyed by growing anticipation for a bullish second quarter. The largest smart contract token, ETH, eyes a breakout above the $4,400 short-term resistance, while XRP seeks support at $3.00.
Interest in Bitcoin has recently leaned toward treasury companies, with Japan’s Metaplanet adding 136 BTC on Monday. As reported, Bitcoin holdings by non-mining companies have surged to approximately 849,420 BTC valued at around $96 billion.
After facing volatility last week amid a sticky risk-off sentiment, Bitcoin Exchange Traded Funds (ETFs) in the US resumed inflows on Monday. According to SoSoValue data, products providing direct exposure to the BTC price via stock exchanges saw inflows of approximately $368 million, marking a significant improvement from an outflow of $160 million on Friday.
If the bullish trend steadies in the coming days and weeks, growing demand for Bitcoin could bolster the uptrend, paving the way for a fresh rally to a new record high above the current at $124,474.
On the other hand, Ethereum faces declining interest from institutional investors, as evidenced by a steady outflow streak that has been maintained since August 29. Ethereum spot ETFs in the US saw a total of $97 million in outflow volume on Monday, bringing the cumulative net inflow to $12.63 billion and the net assets $27.39 billion.
Bitcoin holds marginally above $113,000, after correcting from an intraday high of $113,293. This marks a 5.5% increase from support at $107,240, tested on September 1.
A daily close above the 50-day Exponential Moving Average (EMA) at $112,947 would bolster the bullish outlook.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator, triggered on Sunday, reinforces the bullish outlook. There’s a higher chance that the bullish momentum will continue to increase with the blue MACD line holding above the red signal line.
The Relative Strength Index (RSI) at 51 on the daily chart indicates that buying pressure is increasing. Higher RSI readings reinforce the bullish grip and increase the probability of a breakout above the $120,000 key milestone.
Ethereum is attempting to extend its recovery from support close to the 50-day EMA at $4,088 at the time of writing on Tuesday. A reversal of the RSI above the 50 midline reinforces the bullish grip as buying pressure increases.
Traders will look out for a breach of the $4,400 resistance to ascertain ETH’s recovery potential toward a new record high above the psychological $5,000 level.
Still, the MACD indicator shows that the Ethereum price is not out of the woods yet, particularly with a sell signal sustained since August 25.
A steady bullish reversal in Ethereum price could follow a buy signal likely to be triggered when the MACD line in blue crosses above the red signal line.
As for XRP, the path of least resistance is upward, backed by a break above the $3.00 critical level. A buy signal from the MACD indicator supports its short-term bullish outlook, while the sharp rise of the RSI at 54 indicates increasing bullish momentum.
As traders increase exposure amid rising risk-on sentiment, the chances of XRP breaking out toward its record high grow significantly. If the price reverses below the $3.00 level, the 50-day EMA at $2.91 is in line to offer support.
