Bitcoin, Ethereum, XRP, Catching Breath...Correction or Rebound?

▲ Bitcoin (BTC), Ethereum (ETH), XRP / ChatGPT generated image ©

As a cold sentiment of fear spreads across the virtual asset market, major coins, including the market leader Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple), are all facing intense downward pressure. Prices that had been rising rapidly have hit key resistance levels, and even institutional buying has turned into large-scale outflows, causing overall investor sentiment to freeze rapidly. A period of consolidation is expected to be inevitable for the time being.

According to crypto media outlet Finbold on May 8 (local time), Bitcoin failed to maintain its bullish momentum from the beginning of the week, encountering strong resistance at $82,850 during the week and subsequently falling below $80,000. Ethereum also showed technical weakness, dropping below $2,300, while XRP has been unable to find rebound momentum from its daily low of $1.38. Experts attributed this overall risk-averse sentiment to profit-taking sales triggered by overhead resistance.

Investor anxiety is directly confirmed by the sharp outflow of institutional funds. According to SosoValue data, $278 million flowed out of Bitcoin spot ETFs on Thursday, ending a five-day streak of net inflows. Ethereum spot ETFs also ended four consecutive days of inflows, recording an outflow of $104 million, while XRP spot ETFs showed no fund movement, reflecting a strong wait-and-see attitude in the market. The Crypto Fear & Greed Index also dropped from 47 to 38 the previous day, entering a clear fear phase.

From a technical perspective, Bitcoin is trading around $79,936, facing intense selling pressure. However, it is maintaining precarious short-term bullish momentum by finding support above its 50-day and 100-day Exponential Moving Averages (EMAs) at $75,341 and $76,255, respectively. While the daily chart's Relative Strength Index (RSI) hovers around 62 and the Moving Average Convergence Divergence (MACD) indicates slightly positive figures, suggesting a spark for a rebound, a sustained trend recovery can only be expected after a firm breakthrough of the 200-day EMA at $82,126.

Ethereum is hovering around the $2,286 mark, fighting a difficult defensive battle above its 50-day EMA of $2,265. It is struggling to make significant upward attempts, being blocked by long-term trend lines, the 100-day and 200-day EMAs, at $2,347 and $2,546, respectively. The RSI is at 49, indicating a loss of direction, and the MACD, located in negative territory, suggests limited sustained upward pressure. If the short-term support level collapses, it could fall back to the support zone around $2,145.

XRP traded at $1.38 on Friday, failing to break out of a tedious sideways trading range between $1.30 and $1.50. Although it is holding above the support level around $1.32, the 50-day EMA at $1.41 is currently acting as a formidable resistance wall. Both the RSI and MACD strongly indicate bearish momentum, suggesting that a consolidation process within an overall downtrend structure is likely to continue for some time.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*