Crypto Today: Bitcoin, Ethereum, XRP take a breather from two-day rally

• Bitcoin steps back to $120,000, signaling profit-taking ahead of the weekend.
• Ethereum’s uptrend stalls around $4,500 resistance despite steady ETF inflows.
• XRP holds above the $3.00 support after breaking a key descending trendline support.

Bitcoin (BTC) is trading near $120,000 on Friday after reaching a seven-week high of $120,960 the previous day. Altcoins, including Ethereum (ETH) and Ripple (XRP), are holding near their respective weekly highs, reflecting steady demand from both institutions and retail investors.

The rest of the cryptocurrency market has taken a breather, following two connectivity days of gains, supported by positive sentiment around the “Uptober” narrative. Typically, market participants expect better performance in October, as sentiment suggests September is often a bearish month for crypto.

Data spotlight: Bitcoin shows upside potential as ETF inflows surge 

Interest in Bitcoin spot Exchange Products (ETF) has significantly improved from early in the week, mirrored by steady inflows. SoSoValue data shows that US ETFs experienced a total of $627 million in inflows on Thursday, $676 million on Wednesday, $430 million on Tuesday and $522 million on Monday.

BlackRock’s IBIT ETF saw $466 million in inflows on Wednesday, followed by Fidelity’s FBTC with $87 million and Ark Invest’s ARKB with $45 million. None of the 12 ETF products saw outflows, underscoring the increase in demand.

Bitcoin ETF stats | Source: SoSoValue

Demand for Ethereum spot ETFs has also increased steadily this week, but it is significantly lagging behind that for Bitcoin. Inflows on Thursday totalled $307 million, marking four consecutive days of inflows. 

BlackRock’s ETHA saw $177 million in inflows on Thursday, with Fidelity’s FBTC leading at $61 million and Grayscale’s ETH at $46 million. None of the nine ETF products saw outflows, underpinning the increase in demand.

Ethereum ETF stats | Source: SoSoValue

Meanwhile, retail interest in XRP derivatives is growing, with futures Open Interest (OI) reaching a monthly low of $7.35 billion and averaging approximately $8.47 billion at the time of writing, per CoinGlass data. A steady OI also implies increased engagement and conviction in XRP’s ability to sustain the uptrend in the short term.

XRP Open Interest | Source: CoinGlass

Chart of the day: Can Bitcoin sustain recovery?

Bitcoin hovers around $120,000 at the time of writing on Friday, down from the seven-week high of $120,960 as pressure from potential profit-taking builds. Despite the minor correction, the current technical picture remains relatively bullish, supported by a buy signal from the Moving Average Convergence Divergence (MACD) indicator on the daily chart, which has been maintained since Wednesday. 

A daily close above the $120,000 would affirm the bullish grip, increasing the odds of the rally extending toward BTC’s all-time high of $124,474, reached on August 14. 

Still, the Relative Strength Index (RSI), which has stabilized at 65 after rising from the bearish region, indicates that bullish pressure is easing. If investors focus on taking profits, the down leg below the $120,000 could stretch toward the 50-day Exponential Moving Average (EMA) at $114,094.

BTC/USDT daily chart

Altcoins update: Ethereum, XRP bulls hold steady

Ethereum trades relatively above the 50-day EMA, a key support level at $4,236, following a rejection from the short-term resistance around $4,500, which reinforces positive market sentiment. 

A sustained break above the short-term resistance range from $4,400 to $4,500 would validate the bullish picture. If the pullback persists, the RSI at 56 on the daily chart may decline toward the midline, indicating that bullish momentum is fading.

Since the MACD indicator exhibits a buy signal on the same chart, encouraging traders to increase risk exposure, a break above the general descending trendline in place since the Ethereum price hit a record high of $4,956 in late August, would reinforce the bullish grip.

ETH/USDT daily chart 

As for XRP, bulls are largely in control, supported by a descending trendline on the daily chart and key moving averages. The 50-day EMA, positioned at $2.93, provides immediate support, with the 100-day EMA in line at $2.84 and the 200-day EMA at $2.62.

A gradually uptrending RSI, currently at 57, underpins the bullish outlook alongside a buy signal from the MACD indicator triggered on Wednesday.

XRP/USDT daily chart

Traders should watch out for a potential break above the next hurdle at $3.18, which was previously tested in mid-September. Such a move could mark a bullish turning point for XRP, potentially rallying toward its current record high of $3.66.