Bullish Crypto Consolidation

Market Overview

The crypto market’s capitalisation has remained within the $2.58T–$2.68T range for almost two weeks now. Having staged an impressive rally from 19 to 22 August, the market has returned to a consolidation phase. However, this is already a bullish consolidation rather than a mere pause, as the market achieved a significant technical breakout last month, and the lull of recent days is merely alleviating short-term overbought conditions.

The sentiment index, at 65 (greed), confirms the optimistic mood and a fundamental shift in the cryptocurrency market’s trend. That said, it is quite reasonable to expect that sentiment has not yet reached extreme greed, given that the market is nearly 40% below its peak.

Bitcoin is trading just below $79K, hovering within a narrow range, despite the dollar’s significant weakening and heightened anxiety in equities and bonds. This pause can also be easily linked to resistance in this area back in May, whilst in April 2025, there was support at roughly these levels. Among the key bullish developments, it is worth noting the impending formation of a ‘golden cross’, in which the 50-day MA rises above the 200-day MA, with price trading above this crossover.