- In this final article, I will share my current view of the market: August has been a slightly bearish month, marked by a bullish first half and a bearish second […]
In this final article, I will share my current view of the market:
August has been a slightly bearish month, marked by a bullish first half and a bearish second half.
In terms of dominance, BTC dropped from 62% to 58%, representing a 4% decline. Meanwhile, Ethereum’s dominance increased by 2.7%. Clearly, there has been a shift between these two cryptocurrencies. This is positive because it indicates that investors are seeking higher returns and are shifting from Bitcoin to Ethereum. This trend typically occurs during the initial phase of a bull run, before altcoins begin to rally.
We can also see this reflected in the ETH/BTC pair, which has been in an uptrend since late April, after being in a downtrend since September 2022, as shown in the following chart.
Regarding the dominance of stablecoins and altcoins, they showed only a slight increase (0.4% and 0.3%, respectively).
Source: Tradingview
In fact, we are now entering the third phase of the bull run, in which capital shifts from Ethereum to other altcoins such as Solana. From May to August, Solana was in a downtrend against Ethereum; however, since the end of August, that trend has reversed, and Solana has been outperforming Ethereum.
Source: Tradingview
In summary, until May, Bitcoin was the strongest performer; from May to August, Ethereum was the winning asset, and now it is Solana.
Bitcoin was trading within a daily timeframe channel between 116k and 110k, and after losing this support, it bounced from 108k and is currently positioned slightly above 110k.
Source: Tradingview
In Bitcoin’s weekly chart, we can see that the price has bounced off the 20-period simple moving average (red), which is at 108k, and that the 50-period moving average at 96k (orange) represents an important support level, one that has been respected since March 2023 throughout this uptrend.
In the medium term, there is support at 94k (yellow), and as long as this level holds, the upward trend would not be compromised.
Source: Tradingview
Regarding Bitcoin’s 7-day historical volatility index, we can observe that it is currently at levels around 4, where rallies typically occur.
Source: Tradingview
In August, institutional interest has shifted more toward Ethereum than toward Bitcoin.
For all these reasons, we are at a point where an altcoin rally could occur once Bitcoin rises, accompanied by an increase in altcoin dominance and, consequently, their prices, provided that the 94k support level holds.
All of this and much more can be found in my book Investing in Crypto with Confidence: How to Analyze, Select, and Manage Digital Assets (Palgrave Macmillan), which will be released in early 2026.
About the Author
Javier Pineda, CMT has been a CMT charterholder since 2022, creator and manager of the only crypto hedge fund in Spain and is currently editing and publishing the book Investing in Crypto with Confidence (Palgrave Macmillan). Learn more at https://www.skycrypto.io/.
Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
