Bitcoin was stuck in a narrow range in August. The lead analyst on the Glassnode Checkmate chain highlighted that the spread between Bitcoin’s upper and lower Bollinger Bands has narrowed to 2.9%, the third narrowest on record.

Periods of low volatility are usually followed by an expansion of the range. The more time he spent inside the range, the stronger the final breakthrough from it. The only problem is that it’s hard to pinpoint the time of the hack with certainty. Therefore, traders must be vigilant. Otherwise, they might miss the opportunity to ride the next directional move.

Daily cryptocurrency market performance. source: Coin360

One of the reasons for the weight of risky assets is the strength of the US Dollar Index (DXY), which has been rising for four consecutive weeks.

On the other hand, the US stock markets entered a corrective phase in the past few days. The S&P 500 (SPX) and the Nasdaq Composite both contain both pulled back the past two weeks, indicating profit taking by short-term traders.

What are the important support and resistance levels to watch in Bitcoin (BTC) and altcoins? Let’s analyze the graphs to find out.

Standard & Poor’s 500 Index Analysis

The S&P 500 fell below the 20-day exponential moving average (EMA) of 4,497 on Aug. 3, and since then, bears have thwarted several attempts by the bulls to push the price back above that level.

SPX daily chart. source: TradingView

The price bounced off the 50-day simple moving average (SMA) of 4,443 on August 14, which indicates that the bulls are guarding this level with all their might. Buyers will try to maintain the momentum and push the price back above the 20-day EMA. If they succeed, the index could start its journey to 4,607 and later to 4,650.

If the bears want to take control, they will have to protect the 20-day moving average and drag the price below the 50-day simple moving average. That could start a deeper correction to 4300 and later to 4200.

US dollar index price analysis

The US Dollar Index held support at the 20-day moving average ($102) on August 4 and again on August 10, indicating a change in sentiment from selling on rallies to buying on dips.

DXY daily chart. source: TradingView

The indicator has reached a downtrend line, which is likely to act as massive resistance. If the price falls from the downtrend line but bounces off the 20-day moving average, it will indicate that the trend is still up. This will enhance the odds of a rally above the downtrend line. The index could then rise towards the overhead resistance at 106.

This positive outlook will be invalidated in the near term if the price breaks below the 20-day moving average. Minor support is at 101.74, but if this level fades, the index could drop to 100.82.

Bitcoin price analysis

Bitcoin retreated below the 20-day moving average ($29,458) on August 13, but the bears were unable to build on this advantage and plunged the price to the crucial support at $28,585. This indicates that there is no strong sell-off at the lower levels.

BTC/USDT daily chart. source: TradingView

A flat 20-day EMA and a relative strength index (RSI) near the midpoint indicate a balance between buyers and sellers. This indicates that the BTC/USDT pair can continue to consolidate within the range between $28,585 and $30,350 for a while longer.

The next trend movement is likely to start after the price escapes from this range. If the price declines and falls below the $28,585 support, it could start a decline towards $26,000. Conversely, a rally above $30,350 could boost the odds of a move to the overhead resistance area between $31,500 and $32,400.

Ether price analysis

Ether (ETH) has been holding onto the 20-day EMA ($1,853) over the past few days, which indicates that the bulls have maintained buying pressure but the bears are holding out.

ETH/USDT daily chart. source: TradingView

The 20-day moving average is fading and the RSI is approaching its midpoint, which indicates that selling pressure may be easing. If the bulls push the price above the moving averages, the ETH/USDT pair could rise to $1,930 and then $2,000.

If the bears want to maintain their control, they will have to defend the moving averages. If the price drops from the 50-day Simple Moving Average ($1877), the pair could slip to the strong support at $1816. This is an important level that the bulls should pay attention to, because a break below it could send the pair down to $1,700.

BNB price analysis

BNB (BNB) has been trading below the moving averages for the past 3 days, but the bears have been unable to plunge the price into the symmetrical triangle support line.

BNB/USDT daily chart. source: TradingView

If the price does not break above or below the triangle over the next few days, this will invalidate the pattern. Stable moving averages and an RSI just below the midpoint suggest that the lackluster price action could continue for some time.

A breakout and close above the triangle would be the first sign that the uncertainty is over in favor of the bulls. BNB/USDT could then rise to the overhead resistance at $265.

On the other hand, breaking and closing below the triangle could push the pair to the crucial support at $220.

XRP price analysis

XRP (XRP) has been fluctuating between the moving averages of the past few days, indicating buying near the 50-day simple moving average ($0.62) and selling near the 20-day moving average ($0.65).

XRP/USDT daily chart. source: TradingView

Although the 50-day simple moving average was held by the buyers, the 20-day exponential moving average and the RSI in negative territory suggest that the bears have an advantage. A shallow bounce off the current level will increase the odds of a drop below the 50-day SMA. If this happens, the XRP/USDT pair could drop to $0.56.

Contrary to this assumption, if the price rises above the 20-day moving average, that would indicate buying strength on the lows. After that, the pair may rise to $0.74.

Cardano price analysis

Cardano (ADA) has corrected within a descending channel pattern over the past few days. This indicates a lack of strong buying by the bulls.

ADA/USDT daily chart. source: TradingView

The first sign of strength will be a breakout and close above the channel’s resistance line. That could open the door for a potential rally to $0.34. If this level is measured, ADA/USDT could retest the July 14th high of $0.38.

The bears likely had other plans. They will try to sell rallies to the channel resistance line. If the price falls from this level, it will indicate that the pair may continue to fall within the channel. The important support to watch on the downside is $0.26.

Related: Bitcoin sparks fresh volatility as BTC price reaches a 4-day high near $29.6K

Dogecoin price analysis

Dogecoin (DOGE) rebound was rejected at the downtrend line on August 13, indicating that bears are aggressively defending this level.

DOGE/USDT daily chart. source: TradingView

The price reached the support line of the ascending channel, which is an important level to watch. If the price breaks below the support line, the DOGE/USDT pair could drop to $0.07.

On the contrary, if the price rises from the current level and breaks above the downtrend line, it will indicate that buyers remain buyers at the lower levels. The pair could rise first to $0.08 and later to the channel resistance line at $0.09.

Solana price analysis

Solana (SOL) is trading within the range between $22.30 on the downside and $26 on the upside. A minor feature in favor of the bulls is that the price is trading above the 20-day moving average ($24.09).

SOL/USDT daily chart. source: TradingView

If the current rebound continues, the bulls will try to push the SOL/USDT pair above the overhead resistance at $26. If they succeed, the pair can gain momentum and climb to $29.12 and later to $32.13.

Alternatively, if the price falls from $26, it will indicate that the pair may extend its stay within the range for a few more days. The bears would have to drag the price below $22.30 to break out to the top.

Polygon price analysis

The bulls are finding it difficult to push the MATIC polygon above the 20-day moving average ($0.69), but a positive sign is that they have not ceded ground to the bears.

MATIC/USDT daily chart. source: TradingView

The moving averages flatten out and the RSI is just below the midpoint, which indicates a balance between supply and demand. This balance could tilt in favor of the bulls if they push the price above the 50-day SMA ($0.70). MATIC/USDT could then try to rally to $0.80.

Conversely, if the price falls below the 50-day SMA, it will indicate that the bears are active at higher levels. This might keep the pair stuck in a range for a few days. The bears will have to take a plunge and hold the price below the support near $0.65 to gain the upper hand. The pair could then slide to $0.60.