Bitcoin stays over $118,000 after Elon Musk's SpaceX business moves more than $150 million in BTC, ending three years of inactivity.
Ethereum is losing ground and moving back toward the $3,600 support level, despite significant inflows into spot ETFs.
XRP is falling toward its previous all-time high of $3.40 after being turned away from the $3.66 resistance level.
On Tuesday, cryptocurrencies, especially the biggest altcoins, are exhibiting symptoms of weakness after a week of consistent rises. Ethereum (ETH) is leading the way down, trading at $3,662 at the time of writing on Tuesday, which is more than 2% lower. Ripple (XRP) is also having trouble after testing its all-time high of $3.66 again on Monday.
The cross-border money remittance token is now worth $3.48. At the same time, Bitcoin (BTC) is showing indications of strength as it stays over the $118,000 mark.
For the first time since June 2022, SpaceX, the space exploration corporation Elon Musk started, has moved its Bitcoin to a new wallet. Spot On Chain said that SpaceX moved 1,308 BTC on Tuesday, which is worth around $153 million. This was the end of three years of inactivity.
From May 25 to June 10, 2022, SpaceX sent 17,314 BTC, which was valued around $510.65 million at the time, to Coinbase. The corporation now has 6,977 BTC worth around $822.65 million spread out among known addresses.
After SpaceX's BTC transfer, the price of Bitcoin stayed firm over $118,000. Glassnode's "Market Pulse" analysis says that the market is still leaning toward positive speculation.
Glassnode further said that "in general, market conditions show a healthy but fragile balance." It seems like sellers are getting tired and ready for another possible leg up, but if profits keep going down, the market may go into a wider consolidation period as sentiment cools and positions return to normal.
There is a constant flow of money into Ethereum spot Exchange Traded Funds (ETFs), which brought in almost $297 million on Monday. This shows that people are becoming more interested in cryptocurrencies. This is the 12th day in a row that money has come in, bringing the total to $7.78 billion and the net assets to $19.60 billion.
Bitcoin spot ETFs regulated in the US have had net inflows for 12 days in a row. SoSoValue reported an outflow volume of $131 million on Monday, bringing the overall cumulative inflow to an average of $54.62 billion and the total net assets to just under $152 billion.
The Relative Strength Index (RSI) just fell from overheated levels around 60, which is one of the first signs that Bitcoin's price is going up. At the time of writing, the trend-following tool had climbed to 65, showing that bullish momentum was increasing.
The strong technical structure is backed up by the fact that the moving averages that point up are much below the present price. The 50-day Exponential Moving Average (EMA) is at $110,596, the 100-day EMA is at $105,443, and the 200-day EMA is at $98,512 on the daily chart below. If the trend were to change quickly, these levels would provide temporary support.
Traders will wait for a break over $120,000 to see how strong the upswing is. The next big challenge after this restriction is the record high of $123,218, and then the next big milestone is $125,000.
Traders should also be careful since the Moving Average Convergence Divergence (MACD) is now confirming a sell signal. The blue MACD line has to stay below the red line to confirm the signal, which means that traders should lower their risk.
The price of Ethereum is going down after hitting a high of $3,860 on Monday. The RSI is still rather hot at around 79. If the RSI keeps going down into neutral zone, the ETH reversal might speed up below short-term support around $3,600. There are also other important preliminary support levels, such as $3,500, which was tested as resistance in January, and $3,217, which was support in December.
Even yet, bulls can't be ignored now that there are two Gold Cross formations on the daily chart. The first pattern was verified on July 10 when the 50-day EMA went above the 200-day EMA. The second pattern was confirmed on July 20 when the 100-day EMA settled above the 200-day EMA.
The next important milestone is $4,000, which, if broken, may send the price of Ethereum up toward the record high of $4,878. The seller congestion around $3,858 is the only thing holding it back.
Bears seem to be taking back control of XRP, aiming for a red candle for the first time in three days. After being turned down from the record high of $3.66, XRP fell back to $3.42 before climbing to $3.48 at the time of writing.
The RSI shows that the market is too hot at 80, down from highs of approximately 88. A long decline into neutral zone would mean that purchasing pressure is going down. If the uptrend keeps going down, people could start taking profits, which would make the overhead pressure worse.
After the run to new all-time highs, the price might go sideways, with resistance around $3.66 and support at $3.40. If traders disregard short-term volatility and instead look on the strong technical structure supported by the Golden Cross pattern that happened when the 50-day EMA crossed above the 100-day EMA on July 13, a breakthrough toward $4.00 will happen.
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