The technical TD Sequential indicator on the four-hour chart has flashed buy signals for Bitcoin, Ethereum, and XRP. Monitored by analyst Ali Charts, the signal suggests selling pressure is beginning to exhaust itself, coming right after Bitcoin slipped 5.55% from $86,976 on Oct. 5 to a low near $82,150 before triggering a reversal pattern.
Signs of easing selling pressure were reinforced by concrete whale movement data. On-chain metrics from analytics platform Santiment recorded net outflows of 24,073 BTC from centralized exchanges on Oct. 5, marking the largest daily withdrawal since March 1, 2026. This move into private wallets has drained liquid exchange supply to just 6.5% of total circulating supply.
Fierce Battle in the Derivatives Market
The shift in exchange supply aligns with institutional maneuvers in the options market. A Glassnode report showed market participants taking a defensive yet constructive stance, reflected in a put-to-call open interest ratio holding at 0.56. Over the past 30 days, daily average spending on call (buy) options also outpaced allocations for put (sell) options by $17 million.
Conditions in the Ethereum market were equally tense. ETH derivatives funding rates turned negative alongside a sharp spike in open interest. The combination of negative funding rates and mounting open contracts points to a fierce battle between dip-buying spot investors and aggressive traders adding to short positions.
At the same time, XRP flashed a similar TD Sequential pattern after retreating from a high of $1.53 into the $1.39-$1.40 support zone. Selling pressure on XRP clashed with traditional capital flows, as US spot XRP ETF products absorbed $3.14 million in net inflows during trading on Oct. 6.
Monetary Headwinds Still Ahead
Despite green technical signals and drying exchange liquidity, crypto assets still face a major wall from monetary authorities. Minutes from the Federal Reserve’s September meeting revealed that most officials still favor potential further rate hikes before 2026 comes to a close.
Market participants have now shifted their attention to the upcoming US Consumer Price Index (CPI) data release on Oct. 14. The inflation figures will determine whether these four-hour buy signals have enough momentum to rally, or if they will be derailed by cautious institutions steering clear of interest rate risk. Reported by crypto.news.
Also read: How to Read Candlestick Charts for Beginners
Also read: Big Money Pulls $215M from Ethereum ETFs in a Week - But Solana Whales Double Down
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
