Crypto Market Analysis: Bitcoin's Push Toward $118,000, Ethereum and XRP Recovery Trends

October 6, 2025

• Bitcoin hovering above $112,500. Long-term holders seem less eager to sell.
• Ethereum bounced off trendline support. Eyes on $5,000.
• XRP stuck in sideways action between EMAs. Open Interest cooling down.

Crypto markets showing signs of life Monday. Bitcoin leading the pack after climbing back above $112,000. Big names like Ethereum and XRP joining the upward move. Selling pressure? Fading.

Bitcoin Market Insights: Recovery Taking Shape

Bitcoin touched an all-time high of $124,474 before things got shaky. Macro jitters and profit-taking knocked it down a bit. Long-term holders cashed out. Risk appetite took a hit. Derivatives cooled off too. Bitcoin's Open Interest sits around $79.21 billion now. It was $88 billion back in July.

Price is looking better. Kind of surprising how quickly things turned around. CryptoQuant data shows dormant wallets aren't dumping as much anymore. That's been a problem lately.

"This cycle has again confirmed that long-term holders, including dormant BTC positions, remain a significant source of selling pressure capable of creating market volatility," Darkfost wrote on CryptoQuant.

The Value Days Destroyed chart? It's easing up. Shows coins aren't moving after being held so long. After hitting 2.4, VDD dropped back to normal correction levels. Good sign.

"Continued easing of selling pressure will likely provide market relief and potentially enable renewed upward momentum if demand strengthens," the analyst added.

Technical Analysis: Bulls Back in Control?

Bitcoin climbing after that dip under $110,000. Facing resistance at the 100-day EMA ($110,765). Still below the 50-day EMA ($113,236), though.

MACD says appetite for risk is coming back. Buy signal confirmed. Demand stabilizing. Bitcoin could push toward $118,000 if this keeps up.

RSI at 49. Not bad. Buying momentum picking up steam. If it crosses above the midline? Bulls are winning.

Watch out for the Fed decision, though. Economic data dropping soon. Might shake things up. A drop below the 100-day EMA? Could send BTC down to $107,255 or even $104,392.

Altcoin Scene: Ethereum and XRP

Ethereum holding above $4,400. Bounced right off that trendline. RSI at 52 looks decent. Retail seems interested.

Next stops? All-time high of $4,956 from August. Then the big $5,000. Support sits at $4,053 and $3,580 if things turn south.

XRP? Stuck between $2.77 and $2.91. Boring. Consolidating forever. That MACD sell signal from July 25 still there. Might drift toward $2.52 support.

Watch for that MACD crossover though. Market stability could push it above $3.00. Maybe even challenge the $3.66 all-time high.

RSI trending up at 45. Demand building? If it crosses the midline, $3.00 might come back into play soon.

Trading Tips: MACD Settings for Day Traders

Day traders need the right MACD settings. Standard parameters (12, 26, 9) work fine usually. But tweaks help.

Short-term crypto trading on 5-15 minute charts? Try faster settings (8, 17, 9). More responsive. Generates more signals though. Not always good. Need confirmation from other indicators.

Medium timeframe traders on 15-30 minute charts? Standard settings reduce noise. Still catch the moves that matter. Either way, don't rely on MACD alone. That's asking for trouble.

Crypto Terms Explained

What is Bitcoin?

Biggest crypto by market cap. Digital money without central control. No middlemen needed for transactions.

What are altcoins?

Any crypto that's not Bitcoin. Some people exclude Ethereum too. Litecoin was the first one. A Bitcoin fork with "improvements."

What are stablecoins?

Price-stable cryptos backed by reserves. Usually pegged to the dollar. Supply controlled by algorithms or demand. Easy on/off ramps for investors. Safe harbor during market storms.

What is Bitcoin Dominance?

Bitcoin's share of total crypto market cap. High dominance? Usually means bull market coming or happening. People trust Bitcoin more. Falling dominance? Money flowing to altcoins. Gamblers looking for bigger gains. Altseason might be brewing.