Bitcoin, Ethereum, XRP, Catching Breath Amid Middle East Tensions

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

The cryptocurrency market has entered a period of consolidation amid the re-escalation of Middle East tensions. Bitcoin (BTC) is attempting to defend the $80,000 level, while Ethereum (ETH) and XRP (Ripple) have also seen their short-term upward momentum slow, entering a phase of direction-finding.

According to investment media FXStreet on May 11 (local time), Bitcoin rose to $82,380 during intraday trading but then lost upward momentum and is currently trading below $81,000. The media analyzed that market investor sentiment has been dampened as US President Donald Trump rejected Iran's revised ceasefire proposal as "completely unacceptable," leading to renewed tensions surrounding the Strait of Hormuz.

Despite the overall market anxiety, ETF fund flows remained relatively robust. Bitcoin spot ETFs recorded a total inflow of $623 million last week, but net outflows of $278 million and $146 million occurred on Thursday and Friday, respectively, confirming institutional investors' cautious sentiment. Ethereum spot ETFs recorded a total inflow of $71 million last week, with cumulative inflows expanding to $12.09 billion. XRP spot ETFs also rebounded from a net outflow of approximately $35,000 in the previous week, recording an inflow of $34.21 million last week.

Technically, Bitcoin still maintains an upward structure. The current price is moving above the 50-day and 100-day exponential moving averages (EMAs) of $76,018 and $76,546, and the SuperTrend support line of $75,648 is also maintained. On the other hand, the 200-day EMA of $81,982 is acting as a key short-term resistance level. The Relative Strength Index (RSI) is at 61, indicating that it is not overheated but maintains upward momentum, and the Moving Average Convergence Divergence (MACD) also remains slightly in positive territory.

Ethereum is trading around $2,334, struggling to break through the 100-day EMA of $2,343. However, it is maintaining above the 50-day EMA of $2,275, indicating that buying interest on dips is still alive. XRP is attempting to re-break the downtrend line around $1.44. The RSI is at 57, suggesting lingering upward pressure, and the MACD also maintains a buy signal, but whether it can break the $1.50 resistance is considered a key variable for further upside.

The media analyzed that the market is currently experiencing a tense tug-of-war between geopolitical variables and ETF fund flows. In particular, while short-term volatility could expand if tensions in the Strait of Hormuz and the US-Iran conflict do not ease, the fact that major coins are maintaining above key support levels suggests that the market's fundamental strength has not yet collapsed.

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