Oh, the lows and the highs that August took us through. Higher were the highs of August than in previous months, and deeper were the falls, almost touching rock bottom. It kept us on the edge of our seats, made us bite our nails as we watched the crypto charts crash. Some of our positions were liquidated, and some of us escaped the crash by a whisker. With so much drama going on and emotions running wild, the Fed Reserve Chairman Jerome’s speech about interest rate cuts at Jackson Hole was such a relief to many of us. It was like a mother’s comforting lullaby to a crying baby.
Bitcoin crashes below $110K and may fall further
Bitcoin traded with an opening monthly market price of $118K, but come mid-August, BTC cracked above the $120K level, hitting the high $123K levels. From a height of $123K a fall to $108K within the next two weeks is no ordinary fall.
Bitcoin’s trajectory changed direction with the release of the US producer price index (PPI) in mid-August. The PPI, which measures the average change in prices that domestic producers receive for their goods and services over time, came at 0.9% way off the economist’s predictions set at 0.2%. With the PPI release, Bitcoin’s crashed below the lower trendline and is heading towards $106K. It should not be a surprise it Bitcoin crashed further since the Bitcoin dominance, which is the percentage of BTC market cap against the whole crypto market, is crashing.
This BTC dominance crash is a signal that the altcoin season, where the altcoins outperform Bitcoin, is approaching. The Altcoin Season Index (ASI) predicts that the crypto season, whether it’s altseason or bitcoin season, has leaned more towards the altseason.
An analyst spotted that BTC was trading inside a Bearish Gartley pattern. He stated that if it’s not going to rise above $110K it will only accelerate the drop. “Looks bearish AF,” stated the analyst, and when the pattern is completed, BTC will be trading around $93K.
Ethereum soars with institutional interest and strong on-chain fundamentals
When the outlook for Bitcoin looks gloomy, the ETH/BTC pair is well set up for a major breakout towards $0.046, as it makes higher highs and higher lows. In addition to this, the weekly spot ETH ETF netflow has hit $1 billion while the DEX volume for August hit $135B, and transactions reached 48 million. The active addresses hit 15 million, also Ethereum’s total Value Locked has crossed $240B. All these point to growing interest of the community in the ETH ecosystem.
The ETH/BTC pair is trading inside a bullish symmetrical triangle, and it will break out and move towards 0.046 if it breaks by the book. However, the 50-day moving average will be an obstacle that might need to be broken first. However, on the fundamental side, Ethereum has been prosperous.
Among investor interests are the huge institutions and corporates that are launching ETH-based treasuries and reserves. Among the institutions holding ETH, about 6.7 million ETH is in the ETH ETF, while 4.4 million ETH is in reserves, which is about 10% of the total supply.
This increased interest will send the ETH prices higher with an upgrade awaiting.
Cronos, PYTH, and PUMP tokens were trending last week, making massive rallies supported by institutional investors and retail traders as well. At the time of publication, these three tokens were the top trending on CoinMarketCap.
Cronos gains more than 40% after treasury launch, will it hit $0.5
Cronos (CRO) is trending on CoinMarketCap after the CRO treasury launch announcement. Trading and financial services company Crypto.com’s payment token CRO appreciated by 40% after Trump Media, in collaboration with Yorkville, announced the launch of $6.4 billion Cronos treasury.
An analyst spotted a broadening wedge pattern on the Cronos chart and stated that it could hit $0.5-$0.6 once it breaks out from the upper trendline of the wedge.
PYTH rallies on partnership with the US government, appreciates 100%+
Pyth network ranked second on the trending list after it secured a partnership with the US Department of Commerce. The PYTH token appreciated more than 100% following the announcement that the US government will use its oracle network to bring US economic data (GDP) on-chain. Pointing out three scenarios that could play for PYTH, an analyst stated that the second scenario, where PYTH would $0.50, would be the most feasible one.
Pump.fun buy back program boost prices, next target $0.004
Solana memecoin launch pad, Pump.fun, showed impressive recovery during the last week, after it appreciated by more than 10%. The buy-back program, where the platform bought back almost 15 million tokens, helped the token gain value. The token PUMP appreciated from its lowest price of $0.0026 to $0.0035 in the past week.
On the chart below, the 50-day Moving Average (MA) is approaching the 200-day MA, and if this intersection happens, there will be a Golden Cross, which is bullish.
After breaking out from a descending triangle pattern, PUMP could continue the uptrend and it could reach $0.004 price level.
What to expect in the coming week
As the Altseason indicator hit 61 and keeps its upwards trajectory, an analyst thinks that the Altseason 3.0 will begin this September. Once the Altseason crosses above the 75 level, the Alts will start to gain value.
An investor and market analyst who goes by the pseudonym CryptoELITES stated that once the altseason kicks in, the market cap could rally by 40-50 times.
With a high PPI (0.9%) already out this month, this would be passed on to the consumer, and the Consumer Price Index (CPI) will increase for August, given the exception that producers absorb the cost. The Fed Chair would have a hard decision to make about cutting interest rates, considering CPI, which would be high.
However, the CMEGroup states that the probability of a rate cut is 85% in the next Federal Open Market Committee (FOMC) meeting, which will happen on September 17. With the pressure from Donald Trump to cut rates, Powell might finally look for some positive data to support rate cuts. With the altcoins season around the corner, Powell’s decision for September will have the ability to make or break Trump’s mandate of a pro-crypto-friendly agenda.
