Bitcoin, Ethereum, XRP, taking a breather...Correction or Rebound?

▲ Bitcoin (BTC), Ethereum (ETH), XRP/ChatGPT generated image ©

As cold fear spreads across the virtual asset market, major coins including the market leader Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) are all facing strong correction pressure. Prices that were rising unchecked have hit major resistance lines, and institutional buying has even turned into large-scale outflows, causing overall market sentiment to freeze rapidly. A period of consolidation is therefore inevitable for the time being.

According to the cryptocurrency specialized media Finbold on May 8 (local time), Bitcoin failed to maintain its bullish momentum from early this week, encountering strong resistance at $82,850 during the week and then falling below $80,000. Ethereum also showed technical weakness, dropping below $2,300, and XRP is struggling to find rebound momentum from its daily low of $1.38. Experts attributed this overall risk-off sentiment to profit-taking sales triggered by upper resistance.

Investors' anxiety is directly confirmed by the sharp outflow of institutional funds. According to SosoValue data, $278 million flowed out of Bitcoin spot ETFs on Thursday, ending a five-day streak of net inflows. Ethereum spot ETFs also ended four consecutive days of inflows, recording a $104 million outflow, while XRP spot ETFs showed no fund movement, reflecting the market's strong wait-and-see attitude. The Crypto Fear & Greed Index also dropped from 47 to 38 the previous day, entering a clear fear phase.

From a technical perspective, Bitcoin is trading around $79,936 and is under strong selling pressure. However, it is receiving support above the 50-day and 100-day exponential moving averages (EMAs) of $75,341 and $76,255, precariously maintaining a short-term bullish bias. While the Relative Strength Index (RSI) on the daily chart hovers around 62 and the Moving Average Convergence Divergence (MACD) indicates slightly positive figures, suggesting a spark for a rebound remains, a definitive breakthrough of the 200-day EMA at $82,126 is required to expect a full trend recovery.

Ethereum remains around the $2,286 level, fighting a difficult defensive battle above its 50-day EMA of $2,265. It is constrained by the long-term trend lines, the 100-day and 200-day EMAs at $2,347 and $2,546, respectively, making meaningful upward attempts difficult. The Relative Strength Index (RSI) is at 49, indicating a loss of direction, and the Moving Average Convergence Divergence (MACD) in negative territory suggests limited sustained upward pressure. If the short-term support line breaks, it could fall to the support zone around $2,145.

XRP traded at $1.38 on Friday, failing to break out of its dull sideways trading range between $1.30 and $1.50. While it is holding above the support line near $1.32, the 50-day EMA at $1.41 is currently acting as a massive resistance wall. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) strongly indicate bearish momentum, suggesting that a consolidation process within an overall downtrend structure is likely to continue for some time.

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