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▲ Bitcoin (BTC), Ethereum (ETH), XRP/ChatGPT generated image ©
As Bitcoin (BTC) struggles to reclaim the $80,000 mark, large-scale fund outflows from virtual asset spot ETFs are dampening overall market recovery resilience.
According to investment media FXStreet on May 14 (local time), Bitcoin (BTC) temporarily dropped to $78,922 during Thursday's trading session before attempting to break above $80,000 again. However, investor sentiment has sharply contracted. The Crypto Fear & Greed Index fell from 42 the previous day to 34, entering the 'Fear' stage. Notably, Bitcoin spot ETFs saw a net outflow of $635 million on Wednesday, the largest since late January, clearly reflecting the market's risk-off sentiment.
Ethereum (ETH) was also not free from selling pressure. Ethereum spot ETFs recorded net outflows for two consecutive days, with approximately $36 million exiting on Wednesday. Ethereum is currently trading around the $2,266 mark, remaining below its 50-day Exponential Moving Average (EMA) of $2,274, indicating a short-term downward bias. With the Relative Strength Index (RSI) at 46 and the Moving Average Convergence Divergence (MACD) histogram remaining in negative territory, a technical rebound is not easy.
XRP (Ripple) continues its arduous bottoming process around $1.43. Investor participation has noticeably decreased as the three-day streak of spot ETF inflows stopped on Wednesday. Technically, XRP is barely holding above the Bollinger Band midline at $1.41 and the 50-day EMA at $1.42. While the RSI at 53 indicates a slight advantage for buyers, the 100-day EMA at $1.49 and the downtrend line at $1.50 act as strong resistance barriers, suggesting a breakthrough is needed.
Bitcoin is currently passing a technical inflection point around $79,650. It is attempting to establish itself above the 50-day EMA of $76,478 and the 100-day EMA of $76,753, but overhead, the 200-day EMA at $81,932 and the Parabolic SAR indicator at $82,768 are positioned as resistance lines. Experts predict that a full-fledged bullish expansion for Bitcoin will only be possible if it decisively reclaims the $82,768 mark.
In conclusion, the virtual asset market is navigating a cautious recovery amidst the dual challenges of fund outflows and shrinking sentiment. Experts believe that whether Bitcoin settles above $80,000 and whether Ethereum recovers its major moving averages will be key factors in determining the market's future direction. Investors are advised to be mindful of intraday volatility and closely monitor whether Bitcoin maintains the $76,478 support level.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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