cryptocurrency market I stumbled againBitcoin, Ethereum, and XRP prices plummeted after what looked like a promising recovery. Despite a strong lineup of bullish stories leading up to Interest rate cut in October As regulations become clearer, their momentum has slowed considerably. This results in Questioning the outlook for the cryptocurrency industry By the end of the year.
Technical failures weaken market confidence
sharp pullback It started with a technological rift. It appeared on the charts of Bitcoin, Ethereum, and XRP. Over the past 24 hours, Bitcoin, which had recently risen above $103,000, has returned to a downward trend and continues to threaten to drop below $100,000.
According to recent outlook from On paper, the rally for Bitcoin and other top cryptocurrencies looks strong, according to a DeFi report. However, according to technical analysis, the leading cryptocurrency is currently below several major 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 them tends to signal weakening bullish momentum.
Ethereum followed this downtrend and fell back to the support at $3,400. The same was true for XRP, with the cryptocurrency falling below $2.3.
The technical deterioration across these major assets signals a more cautious attitude among traders, many of whom now see the market structure as vulnerable to further declines.
Declining demand and outflow from institutional investors
While there is still bullish talk, from the direction of pro-cryptocurrency policy under the Trump administration to tokenization efforts by traditional financial institutions, inflows of new capital are slowing.
spot bitcoin ETF, Once a major source of institutional investor interest, it has seen significant outflows since early October, wiping out billions of dollars in value. From a net flow and assets under management perspective, Bitcoin ETFs are among the most successful financial products in history. However, since October 10th, the ETF has seen net outflows of $1.4 billion.
On-chain data further supports this The story of air conditioning demand. long term holder reducing stock holdingsand these are largely absorbed by short-term holders, as evidenced by Glassnode data.
Regarding market psychology, Optimism still reigns supreme Conversations on social media. Michael Nadeau, founder of DeFi Report, noted that despite the recent economic downturn, most investors remain hopeful. Investors seem to be drawn to bullish coverage and are looking for something to hold on to.
At the time of writing, Bitcoin was trading at $101,720, down another 1.3% in the past 24 hours. Ethereum is also down about 1% in the same time frame, trading at $3,330. XRP What is hurting the most is It is trading at $2.2, down 4.5% in the past 24 hours.
Featured image created by Dall.E, chart on Tradingview.com
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