Bitcoin’s price jumped to $58,000 on two occasions on Monday and Tuesday but was stopped and pushed south by over a grand.

Most altcoins have followed suit with minor daily declines, but ICP has defied the overall sentiment with a massive 12% surge.

BTC’s Progress Halted

The primary cryptocurrency had a rough ending to the previous business week as it slumped by over four grand on Friday after the US jobs report for August and the growing exodus from the spot Bitcoin ETFs.

However, the bulls managed to intercept the freefall at this point and didn’t allow another breakdown toward $50,000. BTC recovered some ground and stood mostly above $54,000 during the weekend.

The landscape changed for the better on Monday as the asset exploded to a multi-day peak of $58,000. While the possible reasons are still debated, it tapped that level once again on Tuesday but ultimately failed to conquer it.

The subsequent rejection pushed it south by about $1,500, and it now stands close to $56,500. Its market cap has slipped to $1.150 trillion on CG, while its dominance has retraced slightly to 53.6%.

ICP, AAVE Defy Market Sentiment

Most altcoins produced some gains over the past few days but have mimicked BTC’s performance since yesterday by turning red. Ethereum touched $2,400 yesterday but has retraced to $2,330 as of now. BNB briefly exceeded $520, but it is down to $512 now.

Similar or even slightly more painful losses come from the likes of SOL, DOGE, XRP, ADA, AVAX, and SHIB.

In contrast, AAVE has skyrocketed by 9% and has tapped $150. ICP’s daily surge is even more impressive as it has jumped by 12% to $8.7.

The cumulative market cap of all crypto assets has declined by $30 billion since yesterday and is down to $2.080 trillion.

Bitcoin’s price tumbled below $50,000 at the start of August and to under $53,000 at the beginning of September, which is historically a bad month for the asset.

However, it managed to bounce off, and certain factors provide a more optimistic perspective about the upcoming months in terms of price action for the largest digital asset.

Declining Exchange Reserves

CryptoQuant’s analysis started its bullish forecast by outlining the declining number of BTC stored on cryptocurrency exchanges. As reported yesterday, the bitcoin exchange netflow shows mostly outflows, suggesting that investors have pulled their funds from the trading platforms, which reduces the immediate selling pressure.

According to CQ’s outlook, such transfers out of exchanges have been followed historically by price increases and new peaks.

The graph above shows two such prominent examples from the past four years. Back in late 2020, the BTC held on exchanges declined substantially and the asset skyrocketed to new all-time highs at the start of 2021.

Something similar transpired in early 2023, but a new ATH happened roughly a year later. This suggests that even though this is a bullish development, it could take months and even a year for this cycle’s peak to arrive.

Stablecoin Reserves on a Roll

The second factor listed by CryptoQuant is also something that we touched upon yesterday – the rising stablecoin reserves on exchanges. Just ahead of BTC’s impressive $4,000 rally on September 9 and 10, $300 million worth of stablecoins entered trading platforms, and they serve as the most convenient gateway for investors to accumulate digital assets.

“… Stablecoin reserves on exchanges are increasing, indicating that investors are preparing to buy. Stablecoins represent ready-to-deploy capital, and their rising presence suggests that traders are waiting for the right opportunity to enter the market. This increase signals strong buying interest.” – reads CQ’s report.

Overall Bullish Sentiment

While resources like the Fear and Greed index are still in ‘fear’ territory, CryptoQuant’s analyst said the overall market sentiment could be on the brink of a massive change due to the two aforementioned factors.

Additionally, October and November have been historically more bullish months for bitcoin. This, combined with the upcoming rate cuts in the States and the presidential elections (especially if Donald Trump wins), could lead to an inevitable BTC price breakout that might result in new peaks by the end of the year or at the start of 2025.

TL;DR

‘Euphoric Phase’ Incoming?

Ripple’s XRP has shown quite a wobbly performance as of late, with its value plunging by 7% on a two-week scale. It reached a local bottom of around $0.50 before recovering some of the losses and rising to the current $0.53 (per CoinGecko’s data).

Some analysts believe an explosive price growth might soon replace the negative trend. The X user EGRAG CRYPTO, for instance, claimed XRP could experience a repeat of the 2017 pump.

Back then, its valuation skyrocketed from a mere $0.25 in December 2017 to an all-time high of $3.40 just a month later (a 1,250% increase). A similar bull run nowadays would result in a new peak of approximately $7.20 for XRP.

“XRPArmy STAY STEADY. The upcoming euphoric phase will be known as the XRP MEGA PUMP. Get ready,” EGRAG CRYPTO added.

Earlier this week, The Great Mattsby argued that XRP’s monthly Bollinger Bonds keep squeezing and are now “way tighter than 2017.” The analyst assumed this development would eventually end in a massive rally for Ripple’s native token.

This technical indicator, developed by John Bollinger in the early 1980s, helps traders identify when an asset may be overbought or oversold, thus spotting potential reversal points. 

Tightening the bands means XRP has experienced relatively low volatility for a prolonged time and might be headed for a huge rally (or correction). It is worth noting that historically, this development has resulted in a price movement to the upside. 

Those willing to explore additional forecasts involving XRP, feel free to check our detailed article here.

Another Bullish Signal

The declining supply of XRP on cryptocurrency exchanges should also be mentioned when speculating about the asset’s possible future market dynamics. As CryptoPotato recently reported, the number of tokens held on trading venues dropped to a seven-month low.

Such a change generally indicates that investors might have shifted from centralized platforms toward self-custody methods, resulting in reduced immediate selling pressure.