Bitcoin, Ethereum, XRP All Decline Amid Continuous ETF Outflows

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

Amid ongoing exchange-traded fund (ETF) outflows and risk aversion sentiment, the overall bearish trend in the cryptocurrency market is deepening. With major assets, considered market leaders, successively threatening key support levels, investors are increasingly adopting a wait-and-see approach.

According to investment media outlet FXStreet on July 6 (local time), Bitcoin (BTC) has fallen below $62,000 due to accelerating spot ETF outflows and risk aversion sentiment. Last week alone, US-listed Bitcoin spot ETFs saw $527 million withdrawn, marking eight consecutive weeks of net outflows. However, cumulative inflows remain at $51 billion, and net assets under management (AUM) are estimated at an average of $74 billion. Technically, it is testing short-term support around the Bollinger Band centerline of $61,936, and the Relative Strength Index (RSI) is at 49, indicating a neutral level. While the Moving Average Convergence Divergence (MACD) histogram remains positive, buying pressure is still insufficient to break through upward resistance.

Ethereum (ETH) is also struggling from the impact of eight consecutive weeks of ETF outflows but has barely managed to hold the $1,700 support level. According to a SoSoValue survey, Ethereum spot ETFs experienced a net outflow of $14 million last week, a slowdown compared to the $273 million outflow in the previous week. Currently, Ethereum is trading around $1,756, with strong resistance forming around $1,805, where the 50-day Exponential Moving Average (EMA) and the Supertrend line converge. While momentum showed some improvement, with MACD in the positive territory above the signal line and RSI slightly above 50, maintaining support in the $1,700 to $1,750 range is crucial to reverse the long-term downtrend.

In contrast, XRP (Ripple) showed a differentiated trend with robust inflows, unlike Bitcoin or Ethereum. XRP spot products saw approximately $12 million in inflows last week, extending their streak of net inflows to nine consecutive weeks. According to SoSoValue data, cumulative inflows are $1.49 billion, and net assets under management average $988 million. However, in terms of price, it has retreated after being pushed back by profit-taking around the $1.20 resistance level. With the 50-day EMA at $1.18 and the upper Bollinger Band at $1.20 acting as barriers, the Bollinger Band centerline at $1.10 is expected to serve as the primary short-term support. If this level breaks, there is a risk of further decline to the psychological bottom line of $1.01.

Despite the Crypto Fear & Greed Index rebounding from an average of 12 last week to 24 on Monday, overall investor sentiment towards risk assets remains subdued due to macroeconomic headwinds, geopolitical uncertainties, and the absence of clear upward catalysts. While institutional investors continue to exercise caution, long-term investors' confidence is maintained, as evidenced by Ethereum's cumulative inflows holding at $11 billion. However, major assets are expected to focus on defending support levels in the near term, with upward movement limited below heavy moving averages.

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