Cryptocurrency Markets Show Signs of Consolidation: Potential for a Reversal in Direction?
The crypto market is experiencing a sustained rebound, with Bitcoin trading around $114,351 and Ethereum at $3,664, following a local low on August 2nd. This bullish trend, rather than a trend reversal, is driven by the recent stabilization and new all-time highs in Bitcoin and Ethereum, alongside robust institutional interest and ETF inflows.
Simon Dumoulin, a cryptocurrency enthusiast since 2019, writes in an article updated on 07/08/2025 at 09:35, that the upcoming Federal Reserve monetary policy decisions remain a key factor to watch but so far have not triggered a bearish reversal.
Key points supporting this assessment include:
- Bitcoin has reached new all-time highs, with reports of prices hitting above $123,000 and even $127,000 in mid-August 2025, supported by strong upside momentum in technical indicators and institutional demand.
- Ethereum is nearing or surpassing previous record highs, with market prediction data showing a 64% probability of hitting $5,000 by the end of August 2025 and 87% chance of reaching new all-time highs. ETF inflows have reached nearly $1 billion, providing further bullish support.
Technical analysis of Bitcoin shows an ongoing upward trend with all key moving averages trending higher, momentum firm but not overheated, and bullish indicators such as MACD and Ultimate Oscillator. Volume spikes confirm this breakout scenario.
Market breadth is expanding beyond Bitcoin, with Ethereum's rally and strong inflows into ETH ETFs suggesting a wider crypto market strength. Bitcoin's dominance has even fallen below 60%, indicating growing interest in altcoins.
Inflation data and macroeconomic considerations have introduced some volatility, but traders appear confident in the upward potential, perhaps expecting favorable effects or clarity from the Federal Reserve’s upcoming policies.
Analysts caution that certain support levels (e.g., Ethereum's $4,600) and resistance points (e.g., $4,700 for ETH) remain critical. Failure to hold support could lead to corrections, but current momentum suggests bullish continuity.
The crypto market's stabilization occurs amidst a pessimistic context, with the increase in unemployment to 4.2% in the United States being a worrisome macroeconomic indicator. Strategic investors should remain attentive to upcoming developments in the crypto market.
A rate cut by the Fed could benefit risky assets like Bitcoin. If a trend reversal were to materialize, it could open up interesting investment opportunities on a still very volatile market. However, the Fed's upcoming monetary policy decisions are crucial for the crypto market, and investors should monitor these macroeconomic developments closely as potential catalysts for future directional changes.
The article is about current events in the altcoins sector, with no advertisements for buying cryptos on Biget mentioned. The Fed is in the spotlight, but no specific actions or statements are mentioned in this paragraph. Ethereum is up by 1.4% and is now trading at $3,664. Economic uncertainty exists in the current climate, but the bullish trend in the crypto market remains strong.
- The ongoing bullish trend in the crypto market, as seen with Bitcoin's new all-time highs and strong institutional interest, extends to investing in technology, particularly in altcoins like Ethereum, where robust market prediction data indicates a high probability of reaching new highs.
- Simon Dumoulin suggests that the upcoming Federal Reserve monetary policy decisions, while a key factor to watch, may not necessarily trigger a bearish reversal in the crypto market, considering the robust upside momentum in technical indicators and the market's bullish continuity.
