The cryptocurrency market tripped againwith Bitcoin, Ethereum and XRP prices plunging after what appeared to be a promising rebound. Despite a strong series of bullish speeches, ranging from interest rate cut in October Faced with the improvement in regulatory clarity, the dynamic has weakened considerably. This brings questioning the prospects of the crypto industry before the end of the year.
Technical outage weakens market confidence
The clear decline started with technical cracks which appeared on the Bitcoin, Ethereum and XRP charts. Over the past 24 hours, Bitcoin, which had recently climbed above $103,000, has resumed what looks like another downtrend that threatens to break below $100,000.
According to a recent perspective of According to the DeFi report, the rally looks good on paper for Bitcoin and other major cryptocurrencies. However, technical analysis shows that the leading cryptocurrency is currently 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 move below them tends to signal that bullish momentum is fading.
Ethereum also followed this downtrend, falling back below its support at $3,400. The case for XRP was similar, with the cryptocurrency falling back below $2.3.
The technical deterioration of these major assets reflects a more cautious stance on the part of traders, many of whom now view the market structure as vulnerable to further declines.
Decline in demand and institutional exits
While there are still optimistic stories, ranging from the pro-crypto policy direction under the Trump administration to tokenization efforts by traditional financial institutions, the influx of new capital has slowed.
Spot Bitcoin ETFs, which were once the main source of institutional interest, have seen notable capital outflows, erasing billions of dollars in value since early October. In terms of net flows and assets under management, Bitcoin ETFs are among the best-performing financial products in history. However, since October 10, ETFs have seen net outflows of $1.4 billion.
On-chain data further supports this cooling demand story. Long-term holders reduce their assetsand the majority of them are absorbed by short-term holders, as evidenced by Glassnode data.
Regarding market sentiment, optimism still dominates a lot of the conversation on social networks. Michael Nadeau, founder of The DeFi Report, noted that a large segment of investors remain hopeful despite the recent downturn. Investors seem to be flocking to bullish reports, looking for something to hold on to.
At the time of writing, Bitcoin is trading at $101,720, down another 1.3% over the past 24 hours. Ethereum is also down around 1% over the same period, trading at $3,330. XRP it is the one who feels the weight the most, down 4.5% in the last 24 hours and trading at $2.2
Featured image created with Dall.E, chart from Tradingview.com
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