Bitcoin, Ethereum, XRP Lose Bullish Momentum as Structural Support Holds

Cryptocurrency prices have moderated on Thursday, with Bitcoin (BTC) dropping to test near-term support at $78,000. Ethereum (ETH) and Ripple (XRP), altcoins that had been showing bullish momentum, are now echoing Bitcoin's cautious sentiment.

The price correction is a broad market phenomenon, but appetite for risk assets remains elevated. Market sentiment currently stands at 69 in the Greed territory of the Fear & Greed Index, up marginally from 66 the day before. If sustained, this could signal a renewed breakout.

'Bitcoin has spent a fortnight consolidating in a tight band, defending the $77,000 floor that has held since the breakout and now probing the upper end of the range rather than the lower,' said Yusuf Fakhro, Partner at ARP Digital. 'A market that digests a violent move rather than reversing it is a market that has genuinely repriced.'

The conflict in the Middle East, with Iran-backed Houthi expanding attacks on Saudi Arabia's energy infrastructure and shipping vessels in the Red Sea, has triggered a steady increase in Crude Oil prices. This has led to investors adopting a risk-averse stance.