Crypto Today: Crypto market holds $2.4 trillion as bearish sentiment persists around Bitcoin, Ethereum, XRP 

• The cryptocurrency market cap drops by 10% to $2.4 trillion in February, undermining investor sentiment.
• Bitcoin declines for a second consecutive day, trading around $69,000 despite inflows into spot ETFs.
• Ethereum sellers are tightening their grip, with the price delicately holding $2,000 immediate support.
• XRP remains largely in bearish hands, weighed down by weak technicals, including an extended MACD sell signal.

The cryptocurrency market is trading under pressure at the time of writing on Tuesday, weighed down by risk-off sentiment. The Crypto King, Bitcoin (BTC), is constrained below $70,000, with the price holding around $69,000. Altcoins, including Ethereum (ETH) and Ripple (XRP), exhibit technical weakness but are holding above key support levels at $2,000 and $1.40, respectively.

Crypto sell-off persists as market cap drops 10%

The crypto sector has been in an overall downtrend since Bitcoin hit its record high of $126,199 on October 6, when total market capitalisation rose to $4.38 trillion. 

The October 10 crash significantly dampened sentiment, making it difficult to sustain recovery, while the Federal Reserve (Fed) decision to pause its monetary policy easing cycle in late January accelerated the sell-off.

In February alone, the crypto market capitalisation is down approximately 10% to $2.4 trillion from $2.74 trillion, undermining investor sentiment. Meanwhile, Bitcoin plummeted, testing the $60,000 level on Friday before briefly rebounding above $70,000.

Bitcoin, Ethereum and XRP attract institutional interest 

Institutional investors continue to show interest in Bitcoin, Ethereum and XRP spot Exchange-Traded Funds (ETFs), as evidenced by inflows recorded on Monday. 

US-listed Bitcoin spot ETFs extended a two-day inflow streak, drawing $145 million from investors on Monday. According to SoSoValue data, $371 million inflows were recorded on Friday. 

The cumulative inflow stands at $54.83 billion, with total net assets under management at $90.05 billion. Extending the inflow streak in the coming days would back positive sentiment and increase the odds of Bitcoin rising above $70,000.

Meanwhile, Ethereum ETFs resumed inflows on Monday, receiving around $57 million. This inflow breaks three consecutive outflows, which have been weighing on the smart contract token. The cumulative inflow stands at $11.87 billion, with total net assets under management at $12.42 billion.

Inflows into US-listed XRP spot ETFs totaled $6.3 million on Monday, bringing the cumulative inflow to $1.23 billion, and net assets under management to $1.04 billion. Institutional investors have continued to lean into XRP ETFs, marking four consecutive days of inflows.

Chart of the day: Bitcoin poised for further decline

Bitcoin is positioned well below the 50-day Exponential Moving Average (EMA) at $84,081, the 100-day EMA at $89,939 and the 200-day EMA at $95,470. All three moving averages are sloping downward, underscoring the bearish momentum likely to keep BTC in a downtrend.

The Moving Average Convergence Divergence (MACD) indicator holds below the signal line on the daily chart, suggesting that investors may continue to reduce exposure. However, the red histogram bars are contracting, implying that bearish momentum could be fading, albeit gradually – a situation that may open the door for a breakout on the upside.

According to the Relative Strength Index (RSI) on the same chart, at 32, bearish momentum is still apparent, and declines may extend in the short term unless the RSI recovers toward the midline. A return to test the support at $67,300 is on the cards, while Sunday’s high of $72,271 is still within reach if bulls can reclaim the $70,000 level.

Altcoins technical outlook: Ethereum and XRP test key support levels 

Ethereum holds above $2,000 as immediate support, but its short-term technical picture deteriorates. Technical indicators, including the RSI at 30 and edging lower on the daily chart, confirm a continued build-up in bearish momentum. 

Similarly, the MACD indicator remains below its signal line on the same chart, prompting investors to reduce their risk exposure. Ethereum also holds significantly below the 50-day EMA at $2,741, the 100-day EMA at $3,002 and the 200-day EMA at $3,173. 

As the moving averages slope downward, they limit ETH’s recovery potential. Hence, a close below the $2,000 immediate support may accelerate the downtrend and test Friday’s low at $1,747. 

XRP, on the other hand, holds above support at $1.40 with initial resistance at $1.50. The path with the least resistance remains downward, as reflected by the RSI construed below 35 on the daily chart. 

If the RSI falls into oversold territory, more investors could turn bearish, adding to the selling pressure. Below the $1.40 support, potential declines may retest $1.37 (Monday’s low) and the October 10 low at $1.25.

Conversely, the current support at $1.40 hints at stability, which may attract investor interest ahead of a breakout above $1.50.