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Bitcoin's Bollinger Bands Squeeze
Bitcoin has been experiencing a stagnant August, being enclosed within a tight pricing range. Contributing further to this tranquillity, the upper and lower Bollinger Bands' spread for Bitcoin has shrunk to a meagre 2.9%, marking its third tightest position till date. It is widely understood that following a dormant spell, the market usually witnesses a considerable range expansion. The subsequent breakout is directly proportional to the time spent in the range - however, timing this breakout poses an immense challenge. Hence, traders should remain alert to seize the golden opportunity that may arise from the imminent trend.
Recent Market Developments
The U.S. Dollar Index (DXY) gaining strength for the fourth consecutive week could be unduly heavy for risk assets. Concurrently, U.S. equities markets have seen a correction with both S&P 500 Index (SPX) and the Nasdaq Composite booking profits by retracting over the past fortnight. Let's delayer the indicative support and resistance levels for Bitcoin (BTC) and altcoins to help navigate the trading landscape.
Performance Analysis of Key Indices
The S&P 500 Index broke the 20-day EMA support at 4,497 on Aug. 3. Despite multiple attempts, it has not managed to regain its lost height. Bouncing off the 50-day SMA at 4,443 on Aug. 14, the index is indicating that bulls are securing this level fiercely. If the price breaks the barrier of the 20-day EMA, the index may even target 4,607, ultimately eyeing 4,650. On the flip side, bears need to pull the price below the 50-day SMA for a potential correction to 4,300, extending to 4,200.
Forecasts for Bitcoin, Ether, and other Altcoins
Bitcoin's slide below the 20-day EMA could not instigate the expected downfall to the critical support of $28,585, suggesting mild selling pressure at reduced levels. Similarly, Ether's consistent attachment to the 20-day EMA suggests sustained buying pressure from the bulls despite the bears' efforts. The other altcoins follow similar patterns, with BNB, XRP, Cardano, Dogecoin, Solar, and Polygon all responding to changing market conditions.
