Search ForexCrunch
  • Geopolitical tensions may prove supportive for the cryptocurrency market.
  • ETH/BTC may reach $0.0400 if ETH retains its upside momentum.
  • Bitcoin bulls get ready for the next assault with the focus on $12,000.

The global markets are under pressure again as investors are waiting to see of the new fiscal stimulus is approved. The European stocks are sliding down, while the US index futures also edge down. Meanwhile, Treasures have started recouping losses after Monday’s sell-off caused by better-than-expected U.S. manufacturing activity data. 

The growing tension between the U.S. and China increases anti-risk sentiments and attract inflows to the so-called safe-haven assets. President Donald Trump said TikTok will have to sell its Americal business to the local operators or stop providing services for the US customers by September 15.

We see U.S. stocks at risk of fading fiscal stimulus. U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity, BlackRock Investment Institute strategists led by Mike Pyle wrote in a note. 

The cryptocurrency markets are fairly calm today with Bitcoin mostly unchanged both on a day-to-day basis and since the beginning of the day. Chainlink is the biggest gainer put of top-10. The coin’s value increased by over 14% in the recent 24 hours. XRP and Bitcoin SV are also doing well. 

While the risk-aversive sentiments may keep the cryptocurrency bulls at bay, the simmering geopolitical conflict and the never-ending money printing may prove to be supportive for Bitcoin and other digital assets. However, technical developments are still the key drivers behind the price swings on the cryptocurrency market. The total capitalization of all digital assets in circulation settled at $344 billion, while average daily trading volumes are registered at $96 billion. Bitcoin’s market dominance index is 60.4%.

ETH/BTC Daily Chart

ETH/BTC has posted six green candles in a row. The cross extended the recovery and hit 0.03428 during early Asian hours. At the time of writing, it is changing hands at $0.03485 with over 1.3% of gains since the start of the day. The next major resistance comes at $0.0400.It is followed by weekly SMA200 at 0.04122. The initial support is created by the previous recovery high of $0.03260 and the upper line of the weekly Bollinger Band at $0.03250. If it is cleared, the sell-off may be extended towards a psychological $0.0300. 

Above the current price, the first resistance level is at 0.0350, then the second at 0.0400 and the third one at 0.0450.

Below the current price, the first support level is at 0.0325, then the second at 0.03100 and the third one at 0.0300.

BTC/USD Daily Chart

Bitcoin’s recovery stalled on approach to $11,300. This local resistance is created by the middle line of the 1-hour Bollinger Band. The coin has gained 1.2% in the recent 24 hours and has barely changed since the start of the day. The first digital asset has been moving sideways after a wild price swings, though the overall trend is still bulish as long a sthe price is above $11,000. The local resistance is now created by $11,300 and $11,400. Once this area is cleared, $12,000 will come into focus. This psychological level is reinforced by the upper line of the daily Bollinger Band. Meanwhile, the RSI on a daily chart stays flat close to the overbought territory. The first local support of $11,000 is followed by the previous bottom of $10,500.

Above the current price, the first resistance level is at $11,400, then the second at $12,000 and the third one at $12,500.

Below the current price, the first support level is at $11,000, then the second at $10,800 and the third one at $10,500.

ETH/USD Daily Chart

ETH/USD is one of the best-performing digital asset out of top-5. The coin attempted a recovery above $400, but retreated to $394 by the time of writing. ETH has gained over 2% since the start of the day and on a day-to-day basis. The first resistance is created by the upper line of the daily Bollinger Band which coincides with the psychological $400.00. Once it is cleared, the upside is likely to gain traction with the next focus on $450.00. The strong support area starts with the intraday low of $366. It is followed by $350.00.

Above the current price, the first resistance level is at $400, then the second at $450 and the third one at $500.

Below the current price, the first support level is at $350, then the second at $300 and the third one at $260.

XRP/USD Daily Chart

XRP/USD faced a stiff resistance on approach to $0.3200. The third-largest coin tried to clear this barrier twice since Monday, but each time the sellers pushed the price below $0.3100. At the time of writing, XRP/USD is changing hands at $0.3089. Despite the retreat, the overall technical picture is positive as long as the price stays above $0.3000. Once it is broken, the upper line of the daily Bollinger Band at $0.2940 will come into focus. The next barrier comes at the intraday low of $0.2840.

Above the current price, the first resistance level is at $0.3100, then the second at $0.3200 and the third one at $0.3300.

Below the current price, the first level of support is at $0.3000, then the second at $0.2940 and the third one at $0.2840.