Bitcoin, Ethereum and Ripple Rally Pauses Near Key Levels as Market Conditions Shift

Bitcoin (BTC) traded above $90,000 on January 12 as geopolitical tensions and a criminal investigation into Federal Reserve Chairman Jerome Powell weighed on traditional markets but appeared to support crypto as a safe-haven asset. Ethereum (ETH) and Ripple (XRP) followed similar patterns, rising and then stabilizing amid increased volatility. The market reacted to news of a Department of Justice investigation into Powell, with Bitcoin maintaining resilience above key technical levels.

Bitcoin's price hovered near $91,726, encountering resistance at the $93,608 Fibonacci level. A breakout above this level could signal a potential bullish phase, according to technical analysts.

The 50-day EMA acted as a cap on Bitcoin's upside, limiting further gains. Meanwhile, Ethereum's price remained in the $3,000-$3,300 range, with the 20-day EMA providing immediate support.

Ripple (XRP) faced a slight pullback, with its price testing support at $2.00. XRP ETFs continued to see steady inflows, reflecting ongoing investor interest in the asset.

Why the Move Happened

Bitcoin's stability in the face of geopolitical uncertainty suggested a maturing crypto market. The criminal investigation into Jerome Powell sparked a shift in market dynamics, with crypto assets acting as a potential safe-haven.

Bitcoin's price action showed resilience as it held steady within the $90K range. This was attributed to the broader geopolitical tensions between political leaders and the Federal Reserve, which led to increased uncertainty in traditional financial markets.

Ethereum's price movement reflected a shift in buying behavior, with spot investors driving the uptrend. The decline in leverage and open interest suggested a more balanced market.

How Markets Responded

The U.S. dollar index (DXY) fell slightly as Bitcoin and other cryptocurrencies gained traction. This trend was supported by the U.S. Department of Justice's investigation into Powell, which created uncertainty in traditional markets.

Bitcoin ETFs recorded significant inflows, with BlackRock's IBIT leading the way with nearly $112 million in inflows. This reflected renewed investor confidence and a shift in capital from traditional markets to crypto.

Ethereum ETFs also saw inflows, with Grayscale's ETHE emerging as a top performer with nearly $51 million in inflows. The cumulative inflow for Ethereum ETFs stood at $12.44 billion, indicating growing institutional interest.

Ripple ETFs continued to see steady inflows, with Bitwise's XRP ETF leading with nearly $8 million in inflows. This trend suggested that investors were still cautiously optimistic about XRP's long-term prospects.

What Analysts Are Watching

Technical analysts identified key levels for Bitcoin and Ethereum as critical indicators of future price movement. Bitcoin needed to break above $93,608 to signal a potential bullish phase. The 100-day and 200-day EMAs were also seen as potential resistance levels.

Ethereum's price needed to reclaim the $3,350 level, where the 200-day EMA was located. This level had historically acted as a key rejection area, and breaking above it could lead to a move toward $3,600.

XRP's price was expected to test the 50-day EMA at $2.08 and the 100-day EMA at $2.21. A successful breakout above these levels could lead to further gains, but a breakdown below $2.00 would signal renewed bearish sentiment.

Market analysts also highlighted the importance of ETF inflows as a key indicator of investor sentiment. The continued inflows into Bitcoin and Ethereum ETFs suggested that institutional investors were beginning to treat crypto as a legitimate asset class.

In summary, the crypto market was navigating a period of transition, with geopolitical tensions and institutional interest shaping the direction of Bitcoin, Ethereum and Ripple. Technical indicators and ETF inflows provided key insights into the potential next moves for these major cryptocurrencies.