Crypto Market at a Crossroads: Short-Term Bearish, But Watch for Rotation

As of August 23, 2025, the crypto outlook leans cautiously bearish. Bitcoin has slipped from its $124K peak to around $113K, signaling a notable near-term pullback The Times of India. This downturn is fueled by long-term holders cashing in profits and a shift in selling dynamics, with even short-term holders now in the red—often a sign of market reset and weaker momentum Mudrex.

Onchain metrics reflect this sentiment: BTC dominance fell below 60%, down from over 64%, suggesting capital rotation toward altcoins ETF & Mutual Fund Manager | VanEckAInvest. Yet, technical patterns indicate a temporary consolidation rather than a collapse: Bitcoin is holding short-term support near $113–114K, while broader altcoin indexes show bullish MACD trends and a breakout from a descending bull flag MarketPulseCointribuneAInvest.

However, looking ahead, analysts caution that historical post-halving cycles often see a pullback in September, before a rally resumes later in the year Mitrade.$BTC short only