Bitcoin, Ethereum, XRP, Dogecoin Pull Back: Analysts Say Crypto Market Still In 'Downtrend' But Find 'No Reason' For It To Fall Lower

Bitcoin (BTC) has pulled back from its recent high of $94,789 to trade around $93,000 as of January 7, 2026. Ethereum (ETH) and XRP have also retraced after consecutive days of gains, suggesting profit-taking and a pause in the current bullish trend.

ETF inflows into Bitcoin and other major cryptocurrencies have remained strong despite the recent pullback. Bitcoin spot ETFs recorded a net inflow of $697 million on Monday alone, with cumulative net inflows reaching $57.78 billion as of January 6.

Meanwhile, the Crypto Fear & Greed Index has moved to 44 as of January 7, the highest reading since October 2025, indicating that fear levels have declined from previous extreme readings. The index remains in the 'Fear' zone, but the improvement suggests traders are reassessing risk and not panicking.

Why Is the Market Pausing?

Bitcoin's recent pullback to $93,000 is in line with its short-term support level. The RSI on the daily chart has moved to 63, which shows some weakening of the bullish trend after weeks of gains. The price remains above the 50-day Exponential Moving Average (EMA) at $91,723, indicating that buyers are still active.

Ethereum is also consolidating above the $3,200 level. The RSI for ETH has stabilized at 65, suggesting the market is preparing for a potential breakout. Ethereum ETFs continue to see steady inflows, with cumulative net inflows reaching $12.67 billion.

XRP has stalled around the $2.35 level and is trading near the 200-day EMA. The RSI for XRP is at 74, which is in overbought territory and may signal a pullback if profit-taking accelerates. However, the MACD indicator for XRP remains bullish, supporting the idea that buyers are still in control.

How Are ETFs Affecting the Market?

Bitcoin spot ETFs have continued to attract institutional and retail investors despite short-term volatility. On Monday, inflows hit $697 million, and net assets now total $123.52 billion. The sustained inflows into BTC ETFs suggest that the broader demand for crypto remains intact, even during pullbacks.

Ethereum and XRP ETFs have also seen consistent inflows, with Ethereum ETFs adding $168 million on Monday and XRP ETFs adding $46 million. These flows indicate that investors are still comfortable with exposure to major altcoins, even as prices consolidate.

BlackRock's Ethereum ETF, ETHA, led inflows on Monday with $199 million, followed by other major ETFs like TETH. For XRP, the inflow drop to $19 million from $46 million in the previous session suggests some cooling in demand, but the cumulative inflows remain positive.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin's ability to hold above the $93,000 level, with a key focus on the 50-day EMA. A close below this level could trigger further profit-taking and potentially extend the correction below $90,000.

For Ethereum, the focus is on whether the price can break above the 100-day EMA at $3,307 and the 200-day EMA at $3,352. A successful breakout would confirm the resumption of the bullish trend. The RSI is currently at 65, and a move toward the 50-level could trigger a reversal.

XRP is under pressure as it consolidates near the 200-day EMA. A break above this level would increase the chances of a move toward $3.00. However, a close below the 100-day EMA at $2.23 could result in a sell-off.

Technical indicators suggest that while the market is pausing, it is not necessarily bearish. The MACD and RSI for both Bitcoin and Ethereum remain in favorable positions, indicating that the bulls still have a slight edge.

The Crypto Fear & Greed Index moving into neutral territory suggests a shift in sentiment but does not necessarily indicate a reversal of the broader trend. Market participants are waiting to see whether this pause is a normal consolidation phase or the beginning of a deeper correction.