The Bitcoin market is showing signs of fatigue after briefly dipping near $107,000, just two weeks after reaching an all-time high.
The market has been trading around the $108/$109k zone. Data from the Market Value to Realized Value (MVRV) indicator suggests weakening momentum in the short term. Despite a 13.3% rally from $109,400 to $124,000 in August, MVRV is once again trending lower, signaling that recent gains may have been fueled more by sentiment and institutional ETF-driven legitimacy than by fresh capital inflows.
While this does not necessarily point to a cycle top, it highlights the risk of overstretched valuations without proportional capital support. Historically, such conditions often precede phases of consolidation or correction.
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On the technical front, Bitcoin has printed a rare Golden Cross on the weekly chart, where the 50-week moving average crosses above the 200-week moving average. This formation, last seen in 2015, 2016, and 2019, preceded massive rallies of 264%, 2,200%, and 1,190% respectively.
In 2025, the signal has re-emerged, suggesting potential for another strong move, though no breakout has yet been confirmed. Bitcoin currently trades near $109,500 as the market awaits stronger directional cues.
Crypto analyst Gordon highlighted the setup, stating Bitcoin is “at a golden cross,” while noting that “altcoins [are] the most oversold they have EVER been.” He predicts a sharp recovery, suggesting that “the bounce will be glorious… and it will be SOON.”
He added that a move above $110,000 could rally toward $112,500. However, he also stated that $110,100 could act as a resistance if the move fails. A possible higher low around $108,300 was also noted, which would help maintain short-term bullish structure if the price revisits it. Traders expect low volatility until a clear signal.
August kept the Bitcoin seasonal trend intact, slipping ~6.5%. Still, this year’s drop fared better than the past four Augusts. A move above $110,100 and sustained momentum could signal a shift. Until then, Bitcoin remains range-bound with both upside and downside scenarios in play.
Ethereum Takes Lead in Investors’ Preference
Meanwhile, Ethereum has taken the lead in investor preference. According to CoinShares, crypto inflows hit $2.48 billion last week, with Ethereum accounting for $1.4 billion far outpacing Bitcoin’s $748 million.
Monthly adjusted on-chain transfer volume surpassed $320 billion in August—the highest since May 2021 and the third-largest month on record, according to The Block.
In August alone, Ethereum attracted $3.95 billion, pushing monthly inflows to $4.37 billion and year-to-date totals to $35.5 billion. By contrast, Bitcoin saw net outflows of $301 million during the same period.
Corporate adoption has been a major driver. Public companies’ cumulative ETH holdings jumped from around $4 billion to over $12 billion in August, led by BitMine Immersion and SharpLink Gaming. At the same time, spot ETH ETF volumes surged, with inflows pushing ETFs to now hold more than 5% of Ethereum’s supply.
Notably, analysts interpret the massive inflow to Ether, as part of a “natural rotation” of capital out of Bitcoin and into altcoins. “A lot of this looks like investors locking in profits from Bitcoin’s run and moving into other tokens to catch potential upside,” said Nicolai Sondergaard, research analyst at Nansen.
Altcoins also benefited from optimism around potential U.S. ETF approvals, adding further support to selective growth in the broader digital asset market.
Looking ahead
Despite short-term headwinds for Bitcoin, renewed investor confidence led by Ethereum inflows signals that momentum across digital assets remains strong heading into the next phase of the market cycle.