Dip in Bitcoin Pushes Down Altcoins, as Bitcoin Falls Below Local Support (Bitfinex)
Bitcoin and Altcoin Market Show Signs of Consolidation
The cryptocurrency market is currently experiencing a period of consolidation, with Bitcoin and altcoins showing signs of a temporary break rather than the end of the altseason.
Over the past week, Bitcoin has fallen below its local support level at $115,800, reaching $112,000 over the weekend. This decline in Bitcoin's price is attributed to persistent market weakness and aggressive speculative risk rotation towards Ether (ETH) and other altcoins. Altcoins performed worse than Bitcoin, with ETH closing the week with a 9.7% plunge.
The OTHERS index, tracking the broader altcoin market aside the top ten, closed the week 11.5% in the red. In contrast, Ethereum and the aggregate altcoin market have failed to exceed their 2021 highs. The OTHERS index has shed roughly $59 billion in value over the last 11 days, indicating a clear waning of speculative appetite in the altcoin sector.
However, it's important to note that this consolidation phase is not unique to the current market conditions. August is traditionally a tricky month for cryptocurrency markets, often showing seasonal weakness or consolidation before stronger moves, typically later in the year around October.
Despite the current dip, several altcoins are still experiencing notable gains. ENA is up 14.5%, while PENGU is up 8.4%, but both assets are down from their all-time highs. This suggests that while altcoins are under pressure, there is still continued interest and a fragmented but alive altseason rather than a full stop.
Market experts suggest that this dip is a normal correction helping to cool overheated conditions before possibly continuing higher, supported by factors like healthy Bitcoin demand and increasing new wallet activity. Analysts discussing the market in early August 2025 still consider a potential altseason unfolding, noting ongoing altcoin movements and macro factors that could continue to drive selective altcoin rallies.
Before any catalysts trigger strong directional momentum, there could be a period of reduced volatility and consolidation. Investors should be cautious but aware that this dip fits historical patterns and market cycles without necessarily signaling an end to altseason.
In summary, the current decline in Bitcoin and altcoins appears to be more of a temporary break or consolidation phase rather than the definitive end of altseason. While Bitcoin is struggling, altcoins are experiencing more severe pressure. However, the underlying fundamentals remain strong, and there is continued interest in the altcoin sector. As such, investors should remain vigilant and prepared for potential market shifts.
- The ongoing consolidation phase in the cryptocurrency market involves not only Bitcoin but also altcoins, such as Ether and others, which have shown signs of a temporary break instead of marking the end of the altseason.
- Despite the recent decline in Bitcoin's price and the overall pressure on altcoins, some assets like ENA and PENGU are still experiencing notable gains, indicating a continued interest and an ongoing, albeit fragmented, altseason.
- Analysts predict that the current dip in Bitcoin and altcoins is simply a normal correction aimed at cooling overheated conditions, potentially paving the way for a continuation of the altseason, supported by factors like healthy Bitcoin demand and increasing new wallet activity.
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