Bitcoin bulls are attempting a comeback after weeks of low volatility, but the rise in the U.S. Dollar Index may limit the upside recovery.
Bitcoin has been trading in a tight range, with its volatility shrinking to its third-tightest ever.
Low volatility periods are usually followed by range expansions, but timing the breakout is difficult.
The strength of the U.S. Dollar Index may weigh down risk assets, including Bitcoin.
The S&P 500 Index and Nasdaq Composite have entered a corrective phase, indicating profit-booking by short-term traders.
Important support and resistance levels to watch for Bitcoin and altcoins:
– S&P 500 Index: Bulls need to push the price above the 20-day EMA to start a journey towards 4,607 and 4,650. Bears need to protect the 20-day EMA and pull the price below the 50-day SMA to start a deeper correction to 4,300 and 4,200.
– U.S. Dollar Index: The index has reached a downtrend line that may act as resistance. If the price turns down from the downtrend line but rebounds off the 20-day EMA, it will suggest a bullish trend towards 106. A drop below the 20-day EMA may lead to support at 101.74 and 100.82.
– Bitcoin: The BTC/USDT pair is consolidating inside a range between $28,585 and $30,350. A break below $28,585 could lead to a descent to $26,000, while a rally above $30,350 may enhance the prospects of a rally to $31,500 and $32,400.
– Ether: The ETH/USDT pair is clinging to the 20-day EMA, indicating a balance between buyers and sellers. A thrust above the moving averages could lead to a rally to $1,930 and $2,000, while a turn down from the 50-day SMA may result in a drop to $1,816 and $1,700.
– BNB: The BNB/USDT pair is trading below the moving averages, indicating a dull price action. A break above or below the symmetrical triangle will invalidate the pattern. A break above the triangle could lead to a rally to $265, while a break below could sink the pair to $220.
– XRP: The XRP/USDT pair is swinging between the moving averages, indicating buying near the 50-day SMA and selling at the 20-day EMA. A drop below the 50-day SMA may lead to a slump to $0.56, while a climb above the 20-day EMA could result in a move up to $0.74.
– Cardano: The ADA/USDT pair is correcting inside a descending channel pattern. A break above the resistance line of the channel could open the doors for a rally to $0.34 and $0.38, while a turn down from the resistance line may lead to a descent inside the channel with support at $0.26.
– Dogecoin: The DOGE/USDT pair’s recovery was rejected at the downtrend line, indicating bearish pressure. A drop below the support line of the ascending channel could result in a tumble to $0.07, while a break above the downtrend line could lead to a rise to $0.08 and $0.09.
– Solana: The SOL/USDT pair is trading inside a range between $22.30 and $26. A break above $26 could lead to a rally to $29.12 and $32.13, while a turn down from $26 may keep the pair inside the range with support at $22.30.
– Polygon: The MATIC/USDT pair is struggling to break above the 20-day EMA, but the bulls have not given ground to the bears. A move above the 50-day SMA could result in a rally to $0.80, while a turn down from the 50-day SMA may keep the pair range-bound with support at $0.65.
– Bitcoin bulls are trying to make a comeback, but the U.S. Dollar Index may limit the upside recovery.
– Bitcoin and altcoins are trading in tight ranges, with low volatility indicating a potential breakout.
– The strength of the U.S. Dollar Index and corrective phase in equities markets may weigh down risk assets.
– Key support and resistance levels to watch for Bitcoin and altcoins have been highlighted in the analysis.