Crypto Today: Bitcoin, Ethereum, XRP extend recovery as US Senate passes bill to end government shutdown
- Bitcoin rises above $106,000, bolstered by improving sentiment as the US Senate votes to advance a bill to end the government shutdown.
- Ethereum is poised for an 18% upswing as risk-on sentiment returns in the broader cryptocurrency market.
- XRP bulls tighten their grip with the MACD indicator triggering a buy signal.
Bitcoin (BTC) is trading above $106,000 at the time of writing on Monday as the cryptocurrency market broadly recovers following the United States (US) Senate vote to advance a bill likely to end the record-breaking government shutdown.
Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in Bitcoin's footsteps, creating new opportunities for investors.
US Senate advances bill to end government shutdown
The US Senate has voted to advance a bill that would reopen the government and keep it afloat at least until the end of January amid a record-breaking government shutdown.
Seven Senate Democrats and one independent joined Republicans to advance the bill through a 60-40 procedural vote on Sunday. This is expected to pave the way for full-year funding for an essential food aid program that currently serves over 42 million Americans, as well as for rehiring federal workers laid off during the government shutdown, according to the media platform Baker City Herald.
Riskier assets, including crypto, are showing signs of recovery following Sunday's vote, pointing to improving sentiment. Macroeconomic uncertainty amid the government shutdown has kept Bitcoin significantly suppressed since the October 10 crash. Reopening the US government could further boost risk-on sentiment and bolster recovery in the cryptocurrency market before the end of the year.
Chart of the day: Bitcoin bulls regain control
Bitcoin is trading marginally above $106,000 at the time of writing on Monday, supported by improving sentiment in the larger crypto market. The Relative Strength Index (RSI), at 45 and uptrending on the daily chart, indicates that bullish momentum is increasing.
A sustained uptrend above the $106,000 short-term support may encourage investors to increase their risk exposure, possibly triggering a buy signal from the Moving Average Convergence Divergence (MACD) indicator on the same daily chart.
A break above the 200-day Exponential Moving Average (EMA) at $108,028 would affirm the bullish grip, increasing the odds of a Bitcoin price rally above the $110,000 round number resistance.
Altcoins update: Ethereum, XRP advance as market dynamics shift
Ethereum is holding above $3,600 and the 200-day EMA at $3,596 at the time of writing on Monday. The RSI is at 44 after a bullish crossover on the daily chart, which indicates that bullish momentum is rising.
Investors will likely increase their risk exposure if the MACD indicator confirms a buy signal on the same daily chart. Other key levels of interest for traders are the 100-day EMA at 3,886 and the psychological resistance at $4,000.
Meanwhile, retail demand for Ethereum has stabilized, with futures Open Interest (OI) rising to $41 billion on Monday, up from $39 billion the previous day. Such stability is required to improve investor confidence, following a prolonged risk-off sentiment since the October 10 deleveraging event.
Furthermore, a steady increase in the OI would indicate that investors are ready to return and increase their risk exposure.
As for XRP, bulls are tightening their grip, paving the way for a steady recovery above $2.50. The daily chart showcases a bullish picture, supported by a buy signal from the MACD indicator. Risk-on sentiment is expected to increase with the blue line lifting above the red signal line.
The RSI on the same daily chart remains at 53 and rising, suggesting that bulls have the upper hand. A break above the 50-day EMA at $2.56 and the 100-day EMA at $2.65 would go a long way toward affirming the bullish outlook.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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