What could drive the next leg up for BTC, ETH and XRP?

Cryptocurrency prices are extending gains on Thursday, led by Bitcoin’s (BTC) climb above $70,000. Ethereum (ETH) remains bullish, trading above $2,200, while Ripple (XRP) has recovered above $1.15 as bulls tighten their grip.

Crypto ETFs see inflows as sentiment improves

The crypto market sentiment is ticking up, holding at 62 in the Greed territory Thursday, as reflected in the Fear & Greed Index. This marks a major improvement, as it stood at 46 the day before and now holds levels last seen in January. Continued improvement in the index could boost interest in risk assets, and raises the chances of an extended recovery.

Bitcoin spot Exchange-Traded Funds (ETFs) have extended their inflow streak, attracting roughly $517 million in deposits on Wednesday. This marks the highest inflows since June 2, underscoring the sudden spike in risk-on sentiment. Meanwhile, cumulative inflows now stand at $54.79 billion, rising from $84.31 billion the previous day.

Ethereum spot ETF inflows remained positive on Wednesday, attracting $189 million in inflows following $31 million on Monday and $71 million on Tuesday. Cumulative inflows average $11.74 million, with net assets at $12.06 billion

Similarly, XRP spot ETFs recorded inflows totaling $2.35 million on Wednesday, down from $5.81 million the previous day. Despite the decline, cumulative inflows hold steady at $1.52 billion, with net assets averaging $1.01 billion.

Technical analysis: Bitcoin extends recovery

Bitcoin trades at $71,260, maintaining a bullish near-term bias as price holds above the 50-day and 100-day Exponential Moving Averages (EMAs) at $64,832 and $66,560 and the SuperTrend support at $65,014. However, the pair is approaching a key structural cap at the 200-day EMA around $72,203, while the Relative Strength Index (RSI) at 77 signals overbought conditions and the Moving Average Convergence Divergence (MACD) shows a strong positive reading, hinting at robust but potentially stretched upside momentum.

Immediate resistance lies at the 200-day EMA near $72,203, the next hurdle for bulls and a potential trigger for consolidation if it holds. On the downside, initial demand is seen at the 100-day EMA at $66,560, followed by the SuperTrend line at $65,014 and deeper support at the 50-day EMA around $64,832 and the rising trend-line floor near $63,058, where a pullback could find a more durable base if overbought pressures unwind.

Altcoins technical outlook: Ethereum and XRP gain momentum

Ethereum trades at $2,269, extending its break higher above a downward resistance trendline while remaining well supported by a dense stack of moving averages. The spot price holds decisively above the 50-day EMA at $1,900, the 100-day EMA at $1,933 and the 200-day EMA at $2,112, which together suggest a firmly bullish near-term bias with the SuperTrend line at $2,017 reinforcing the underlying demand.

Momentum is strong, as the RSI hovers in overbought territory near 83 and the MACD stays firmly positive, with the line advancing and the histogram expanding, hinting that buyers still control the tape despite stretched conditions.

Initial support lies at the 200-day EMA around $2,112, ahead of the SuperTrend indicator at $2,017, while deeper pullbacks would likely look toward the 100-day EMA at $1,933 and the 50-day EMA at $1,900 as broader trend floors. On the topside, the next notable resistance is suggested by the origin of the broken downward trendline near $2,400, and a sustained close above this area would open the way for a rally continuation. Still, the elevated RSI warns that the pair could first consolidate or correct toward the mentioned supports before attempting fresh highs.

XRP holds above the 50-day EMA at $1.08 and the SuperTrend support at $1.01, keeping a constructive bullish bias despite facing nearby overhead supply at the 100-day EMA at $1.15. Momentum remains strong, as the MACD stands above zero and the RSI hovers near overbought territory at 68, suggesting buyers still control the near-term tone though upside could be prone to fatigue.

Immediate resistance emerges at the 100-day EMA at $1.15, with a more significant barrier seen higher at the 200-day EMA at $1.34, where a sustained break would be needed to reopen the path toward a broader bullish extension. On the downside, the latest close around $1.15 acts as a short-term pivot, with stronger support at the 50-day EMA at $1.08 ahead of the SuperTrend base at $1.01. A daily close below these levels would hint at a deeper corrective phase after the recent rally.

(The technical analysis of this story was written with the help of an AI tool.Know more.)

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts.

He enjoys deep dives into emerging Web3 tren

Source: www.fxstreet.com