This week, Bitcoin saw a notable rally, with its price rising to new highs. Much of this upward momentum appears to be tied to political and institutional developments.
Executive Order and 401(k)s: The news that President Trump signed an executive order to allow cryptocurrencies, including Bitcoin, in 401(k) retirement accounts was a major driver. This is seen as a potentially game-changing move that could unlock trillions of dollars in retirement savings for crypto investment, significantly broadening the market for Bitcoin.
Technical Analysis: Analysts have pointed to strong support levels for Bitcoin and have noted that institutional sentiment is improving, which could lead to further upward movement.
It’s worth noting that while Bitcoin has seen positive movement, some other cryptocurrencies, or “altcoins,” have experienced more mixed results or have seen some pressure.
Bitcoin’s dominance rises while signs of a fall to 111K are unmissable
Bitcoin’s dominance in the market has been on the rise, as investors seem to be moving towards what they perceive as higher-quality assets.
Meanwhile, the Altcoin Season Index (ASI) has moved further below the 50 mark on the ASI indicator, and has fallen more towards the Bitcoin season section. This shows that Bitcoin is performing much better than the altcoins.
Bitcoin is trading inside a bearish rising wedge. A bearish rising wedge forms when the price climbs within a narrowing upward channel, signaling weakening bullish momentum. Volume often declines during the pattern, hinting at buyer exhaustion. Though it may look like a steady uptrend, it typically ends with a sharp breakdown below support. Traders see it as a warning sign for an impending bearish reversal. As such, in the coming days, the BTC price could fall to as low as $111K.
Ethereum breaks above resistance at $4K, next stop 5K?
Over the past week, Ethereum (ETH) has experienced a notable upward trend, recovering from a dip at the beginning of the month. After a slight pullback in late July and early August, the price has been rising, with some sources reporting a weekly increase of over 5%.
Ethereum’s price has been fluctuating, but it has been consistently pushing toward the $4,000 mark. It has seen daily lows around $3,691 and highs near $3,952.
Bullish Momentum: Several factors are contributing to the positive sentiment. Technical analysis indicates bullish signals, with ETH trading above key moving averages. The MACD (Moving Average Convergence Divergence) has shown a bullish divergence, and the RSI (Relative Strength Index) is in a bullish zone, suggesting room for further growth.
Institutional Interest: There’s been a significant increase in institutional and whale activity. Reports suggest large buyers, including an institution, have accumulated hundreds of millions of dollars worth of ETH. This aggressive buying is a major driver of the recent surge. Additionally, Ethereum spot ETFs have seen three consecutive days of inflows, further indicating growing institutional confidence.
Crucial Resistance Level: A key point of focus for traders was the $4,000 resistance level. However, ETH has crossed above this level and the next resistance to look at is $4,370. Analysts believe that a decisive close above this level is crucial for further growth. Historically, ETH has been rejected at this price point multiple times, with subsequent price drops. A successful breakout could pave the way for a new all-time high, potentially reaching $5,000, in the bigger picture.
XRP vs SEC case dropped after four years, will XRP hit $4.5
The fours years long Ripple vs SEC case came to an end after the duo decided to drop the case. The case finally concluded when the duo in a joint statement appealed for a dismissal. With XRP case dropped, the daily spot netflow is on the positive side. This shows that there are funds flowing more into the market than the outflow.
In addition, the open interest, or the number of open contracts is increasing and this shows that the crypto community is expecting XRP to gain value. On the daily chart, XRP has broken out from the bull flag and it could hit $4.5.
Conclusion
Overall, this week’s market action reflects a renewed wave of optimism in crypto, fueled by political moves, institutional inflows, and strong technical setups. Bitcoin’s rally to $116K and Ethereum’s push past $4K highlight growing confidence, even as chart patterns warn of possible pullbacks. Altcoins, however, continue to lag, except XRP, as capital consolidates into major assets. With key resistance levels in sight, the coming days could define whether this momentum turns into a sustained breakout or a sharp correction.
