BTC bullish momentum fizzles out

• The cryptocurrency market reacts to the growing pessimism.
• ETH/BTC is within a bullish trend, on the way to $0.0300.
• BTC/USD recovery stalled, but the short-term bias is bullish.

The cryptocurrency market has gained some ground during the week; however, Bitcoin and all major altcoins are nursing losses on Friday as speculative traders choose to lock profit before the weekend. Investors are concerned about the economic impact of geopolitical uncertainty and the escalation of Sino-American tensions.

Moreover, the recent macro reports suggest that the recovery in the world’s largest economy might have stalled as U.S. jobless claims increased for the first time since March. Congress is negotiating a relief package for the Americans whose benefits expire at the end of the month.

The European stock indices slipped into a red zone following the negative momentum on the Asian exchanges. The futures contracts on the US indices are also in retreat, while gold is close to an all-time high amid the global rush to safety. The major sell-off on the global market may increase the bearish pressure on digital assets.

Janet Mui, an investment director at Brewin Dolphin, said on Bloomberg TV:

We won’t be surprised if there is some sell-off because investors are shifting focus back to this geo-political tension.

ETH/BTC Daily Chart

ETH/BTC is currently trading at 0.02840. The cross hit the recent high at $0.2920 and settled above the upper line of the daily Bollinger Band at $0.2800. Now this area serves as local support that may stop the downside correction. If it is broken, the sell-off may be extended towards the former channel resistance of $0.02620 reinforced by the middle line of the daily Bollinger Band. ETH/BTC needs to stay above this area, to retain the bullish bias. Once it is cleared, a 50-day Simple Moving Average at $0.02542 will come into view. On the upside, the local resistance is created by $0.02900, followed by $0.0300

Above the current price, the first resistance level is at 0.02900, then the second at 0.02300 and the third one at 0.0350.

Below the current price, the first support level is at 0.02800, then the second at 0.0260 and the third one at 0.0250.

BTC/USD Daily Chart

BTC/USD is currently trading at $9,510. The first digital coin retreated from the recent high of $9,682 but managed to settle above the psychological $9,500. This barrier serves as local support, followed by a 50-day SMA at $9,350. the short-term trend is bullish as long as the price stays above this technical level. BTC/USD has stayed mostly unchanged on a day-to-day basis and lost 1.1% since the start of the day.  the next local resistance comes at $9,800. Critical support is still created by the above-said 50-day SMA and the psychological barrier of $9,000.

Above the current price, the first resistance level is at $9,800, then the second at $10,000 and the third one at $10,400.

Below the current price, the first support level is at $9,350, then the second at $9,000 and the third one at $8,500.

ETH/USD Daily Chart

ETH/USD is currently trading at $270.43. The second-largest digital asset jumped outside he daily Bollinger Band and hit $281.37 on Thursday amid strong bullish momentum. Now the coin is supported by the upper line of the daily Bollinger Band at $267 and the former support $260.00. If it is broken, the sell-off may gain traction and push the price towards $240 (the previous channel resistance) and $237.00 (50-day SMA).  The critical support is created by a 200-day simple moving average on approach to $200 level. On the upside, the next resistance is created by the recent high at $281.37 and $300.00

Above the current price, the first resistance level is at $281, then the second at $300 and the third one at $350.

Below the current price, the first support level is at $260, then the second at $237 and the third one at $200.

XRP/USD Daily Chart

XRP/USD is currently trading at $0.2030. The coin managed to stay above psychological $0.2000, but the upside momentum is losing traction. The coin faced a stiff resistance on approach to $0.2100. This psychological area reinforced by 200-day SMA discouraged the bulls and triggered the sell-off. On the downside, if $0.2000 gives way, the short-term bullish scenario will be invalidated.  The next local support is created 100-day SMA and the middle line of the daily Bollinger Band at $0.1970. This area may slow down the correction, but if it is broken, 50-day SMA on approach to $0.1900 will come into focus.  On the upside, the imitial resistance is created by the above-said 200-day SMA on approach to $0.2100. Once it is out of the way, the upside is likely to gain traction with the next focus on 0.2270 (50-week SMA and the upper line of the weekly Bollinger Band).

Above the current price, the first resistance level is at $0.2100, then the second at $0.2200 and the third one at $0.2270.

Below the current price, the first level of support is at $0.2000, then the second at $0.1970 and the third one at $0.1900.