- Bitcoin, Ethereum, and XRP showed gains ahead of the second round of US-China trade talks, with BTC climbing above $106,000 and ETH rebounding above $2,500.
- Positive technical indicators and growing investor confidence suggest a potential continuation of the bullish trend, despite some ETF outflows for Bitcoin.
Market Eyes US-China Trade Talks for Direction
The cryptocurrency market is catching a fresh breath as major coins, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), rally ahead of the highly anticipated second round of US-China trade negotiations. Set to take place in London, these talks aim to broaden discussions beyond tariffs and ease ongoing global economic tensions.
A UK government spokesperson emphasized the importance of these talks, highlighting that “a trade war is in nobody’s interests,” signaling optimism across markets. This positive sentiment has fueled renewed investor confidence, reflected in Bitcoin pushing above the key $106,000 level—its highest since late May.
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Bitcoin’s Bullish Momentum Builds Despite ETF Outflows
Despite recent net outflows from Bitcoin spot ETFs, notably Fidelity’s FBTC with $168 million withdrawn last week, BTC’s price action tells a different story. Bitcoin currently trades around $106,600, holding firm above critical moving averages such as the 50 and 100-period EMAs near $106,340.
Technical indicators bolster this bullish outlook: the MACD line remains above the signal line, and the SuperTrend indicator recently flipped to green, signaling strong upward momentum. The Relative Strength Index (RSI) rising to 62 hints at growing strength, with a breakout towards $110,000 within reach—though caution remains as overbought conditions near.
Ethereum and XRP Show Signs of Recovery
Ethereum’s price has rebounded above $2,500 after a brief dip to $2,476 over the weekend. With the RSI crossing above the 50 midline and continued inflows into Ethereum spot ETFs totaling $281 million last week, ETH is on track to test resistance levels at $2,600 and $2,700. A sustained move beyond these could open the door toward the $3,000 milestone, signaling renewed bullish energy in the smart contracts space.
Meanwhile, XRP has stabilized above key EMAs at $2.21 and $2.23, trading near $2.25. The MACD has maintained a buy signal since Saturday, suggesting the uptrend may persist. Traders will watch for a breakout above the 200-period EMA at $2.25, with resistance levels clustered around $2.40, $2.50, and $2.65 shaping the path ahead.
Looking Ahead
With the US-China trade talks underway, cryptocurrency markets remain sensitive to geopolitical and economic developments. Bitcoin’s poised breakout, alongside Ethereum and XRP’s steady recoveries, underscores cautious optimism. Investors and traders alike will be monitoring these key levels and indicators closely, balancing the bullish signals against potential profit-taking and broader market dynamics.
Stay tuned as crypto markets navigate this pivotal week—where diplomacy and technical trends intersect, shaping the near-term trajectory for BTC, ETH, XRP, and beyond.
