Bitcoin consolidation below $123,000 reflects caution rather than market weakness

Bitcoin’s (BTC) stalling betwixt its caller all-time precocious and scope lows is simply a motion of investors digesting the question alternatively than marketplace weakness.

According to the August 18 Bitfinex Alpha report, BTC surged to a grounds $123,640 earlier retreating 5.44% from highest to trough, returning to the little extremity of its established trading range.

The pullback followed higher-than-expected US user and shaper terms ostentation readings, which tempered hazard appetite crossed plus classes. 

Bitcoin has since entered a consolidation phase, with investors adopting a wait-and-watch attack up of imaginable argumentation signals. For now, BTC continues to oscillate betwixt its all-time precocious and local scope lows, reflecting a digestion play alternatively than structural weakness.

The study noted that the likelihood of a Federal Reserve rate-cutting rhythm aboriginal this twelvemonth could supply a supportive backdrop for some Bitcoin and Ethereum (ETH). 

Until then, traders should expect range-bound conditions to dominate, with volatility shaped by incoming macroeconomic data.

Altcoins nether pressure

In the existent environment, altcoins stay much susceptible than majors. Liquidity is concentrating successful Bitcoin and Ethereum, portion superior rotation distant from higher-beta assets leaves smaller tokens exposed to sharper retracements. 

This signifier is emblematic successful the aboriginal stages of bull markets, wherever organization inflows archetypal consolidate successful BTC and ETH earlier expanding into the broader market. 

A decisive interruption supra all-time highs successful these majors would beryllium the cardinal catalyst for renewed inflows and broader strength.

Ethereum has played a captious relation successful mounting the code for integer assets. From April lows of $1,386.80, ETH climbed to $4,783.90 connected August 14, little than 2% beneath its all-time precocious of $4,864.90. The beforehand reinforced Ethereum’s presumption arsenic the superior liquidity operator extracurricular Bitcoin, with its show fuelling renewed speculation successful altcoins.

The rotation is disposable successful Bitcoin Dominance, which has declined from 65% to 59% implicit the past 2 months. Historically, specified declines successful dominance person often coincided with periods of accelerating speculation crossed alternate assets. 

While majors consolidate, superior continues shifting down the hazard curve, a dynamic that whitethorn persist until a wide macroeconomic catalyst emerges.

The station Bitcoin consolidation beneath $123,000 reflects caution alternatively than marketplace weakness appeared archetypal connected CryptoSlate.