Bitcoin (BTC) is making a push towards $90,000 as of Monday, indicating a recovery in the broader crypto market following the financial policy challenges of last week.
Ethereum (ETH) has gradually moved above $3,100, even though retail demand remains somewhat shaky. On the other hand, XRP is attempting to reclaim its standing above $2.00, buoyed by a modest uptick in futures open interest (OI).
Data spotlight: Bitcoin retail market growth, Ethereum and XRP face obstacles
The Bitcoin derivatives market appears to be expanding as retail investor interest picks back up after a lengthy downturn. As per CoinGlass data, the average OI for futures reached $61.35 billion on Monday, rising from $59.8 billion the day before.
This measure, which gauges the total value of open futures contracts, had dropped to a nine-month low of $56.32 billion on December 7. In contrast, retail demand hit an all-time high of $94.12 billion on October 7, just ahead of a significant deleveraging event that transpired later in the month.
This increase in OI seems to indicate that retail traders are feeling optimistic about Bitcoin’s future, pushing them to seek greater investment exposure.
Ethereum is experiencing some turbulence, as retail demand dipped to $39.32 billion from $41.32 billion since Friday. Its futures OI had reached a record high of $70.13 billion on August 23, but has since fallen to a six-month low of $32.57 billion on November 22.
While Ethereum’s average futures OI was $3.72 billion on Monday, up from $3.57 billion previously, XRP’s retail interest is still noticeably low. To put it in context, XRP’s OI peaked at $10.94 billion on July 22, spurred by FOMO among investors interested in cross-border payment solutions. A sustained rise in OI is essential for supporting any price recovery here.
Chart of the day: Bitcoin on the verge of a potential breakout
Bitcoin is inching closer to that $90,000 mark this Monday, aided by an upward trend in the Relative Strength Index (RSI) on its daily chart. If the RSI climbs above 44 and moves into bullish territory, it could pick up momentum, paving the way for a substantial breakout above $90,000.
The Moving Average Convergence Divergence (MACD) on the same chart is also reflecting minor positive movement, keeping the blue line above the red signal line. A continued rise in the MACD, moving into bullish conditions while the green histogram bars extend above the average line, might motivate investors to increase their risk exposure.
However, it’s worth noting that the overarching trend remains bearish, with key moving averages like the 50-day EMA at $95,605, 100-day EMA at $101,025, and 200-day EMA at $103,051 suggesting a potential downturn. If the price does not bounce above the 50-day EMA, the chances of a rally beyond $100,000 could stay limited.
Altcoin update: Ethereum bulls gain strength as XRP flounders below resistance
Ethereum has recovered from Sunday’s low of $3,024, currently trading above $3,100. The RSI has climbed back over the 50 midline, signaling an uptick in bullish momentum. The MACD indicator has signaled a buy since November 26, also poised to move into bullish territory. Should the green histogram bar expand above the average line, it may prompt investors to elevate their risk appetite to gain further momentum.
That said, the 50-day EMA of $3,282 may act as a ceiling for any rebound, but if Ethereum can break past it, there’s potential to exceed both the 200-day EMA of $3,440 and the 100-day EMA of $3,476. Conversely, failure to surpass the 50-day EMA might cap ETH’s growth and heighten the risk of a pullback below $3,000.
XRP is now attempting to find its footing after recovering from a Sunday low of $1.95, trading just shy of the crucial resistance level at $2.00. A slight uptick in the RSI indicates that the bulls might be gaining the upper hand, but it’s still deeply embedded in bearish terrain, sitting at 41.
The MACD is currently flat, with the red signal line below the blue line, reinforcing the bearish sentiment. XRP also lingers below its 50-day EMA of $2.21, 200-day EMA of $2.38, and 100-day EMA of $2.45 — which could hinder any chances of a recovery above $2. If it can’t break the initial resistance at $2, it might be forced to test the support level from November 21 at $1.82.
