This week has seen quite a rally in Bitcoin, with prices soaring higher. Most of this seems to be pegged to political and institutional developments.
Executive Order and 401(k)s: The news about President Trump finally signing an executive order to permit cryptocurrencies like Bitcoin in 401(k) retirement accounts came this week. This could be a game-changing move, unleashing trillions of dollars in retirement savings for crypto investment, significantly extending the market for Bitcoin.
Technical Analysis: Analysts have cited a strong support level for Bitcoin and institutional sentiment that is improving, bolstering further upward movements.
That being said, it is worth noting that while Bitcoin has logged upward movement, other cryptocurrencies—or “altcoins”—have been more mixed or even under some pressure.
Bitcoin dominance goes up while signals of a fall to 111K are unbeatable
Meanwhile, the dominance of Bitcoin in the market has been on the rise, with investors seeming to move towards what they perceive as higher-quality assets.
Meanwhile, the Altcoin Season Index (ASI) moved further below the 50 mark on the ASI indicator, falling more towards the Bitcoin season section; this clearly indicates that Bitcoin is outperforming the altcoins by a long shot.
Bitcoin is in a bearish rising wedge. A bearish rising wedge occurs when the price is making higher highs and higher lows inside an upward-trending channel. It indicates that buyers are losing strength. Very often, the volume dries up while the pattern is developing and points to buyer exhaustion. While it looks like a steady uptrend, it often ends with a sharp breakdown below support. The pattern is considered by traders as a warning for an imminent bearish reversal. Therefore, over the next few days, the BTC price may decline as low as $111K.
Ethereum breaks above resistance at $4K, next stop 5K?
Over the week, Ethereum has been on an uptrend, recovering from its dip in the first week of the month. Following a slight pullback from late July into early August, the price began rising, climaxing over 5% on a week-over-week basis, according to reports.
Ethereum’s price has been quite unpredictable lately, but it has been constantly pushing upward toward the $4,000 mark. It does have daily lows of about $3,691 and highs near $3,952.
Bullish Momentum: Several factors contribute to such positivity. The technical analysis shows a bullish signal, with ETH trading above the key moving averages. The MACD had shown a bullish divergence, and the RSI is in the bullish zone, indicating more upside could be seen.
Interest by Institution: The institutional and whale activities have surged considerably. Large buyers, including an institution, reportedly amassed hundreds of millions of dollars’ worth of ETH. This aggressive buying has been the significant driver of recent surges. Moreover, Ethereum spot ETFs also reported inflows for three days in a row, further cementing the growing institutional confidence.
Resistance Level: The $4,000 resistance level was the most important for traders. However, ETH has already crossed above this level, and the next resistance to look at will be $4,370. Analysts argue that a decisive close above $4370 will be very key for further growth. Historically, ETH has been rejected multiple times at this price, and subsequent price drops followed. A successful breakout could set the path 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 four-year-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 the XRP case dropped, the daily spot netflow is on the positive side; this shows funds are flowing more into the market compared to 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
In general, this week’s market action reflects a new wave of optimism in crypto, with political moves, institutional inflows, and strong technical setups continuing to inspire. Bitcoin’s rally to 116K and Ethereum’s push past 4K have driven the area of growing confidence, at least against the warnings brought on by chart patterns of possible pullbacks. Meanwhile, altcoins are in continuous lag, except for XRP, as capital consolidates into main assets. With key resistance levels within their sights, the coming days could set the path whether this turns into one sustained breakout or a sharp
