Crypto Technical Analysis: Is the Strength of the Bullish Momentum Fading?

As the final week of August comes to an end, mixed price action has once again become a dominant theme across the cryptocurrency market. Most major digital assets have started to show a slowdown in the bullish momentum observed in previous weeks, while some have even moved into negative territory toward the end of the week. This behavior suggests that buying interest is no longer as broadly aligned as it was recently and that market strength has become concentrated in specific cryptocurrencies rather than the sector as a whole. Unless major assets begin breaking through key technical levels once again, this environment of weaker directional conviction could remain relevant in the coming sessions.

Performance of Major Cryptocurrencies

Source: Data - StoneX, Tradingview

• This week highlighted a clear divergence among major cryptocurrencies. Solana was the only major asset able to maintain a significant advance, posting gains of more than 14%. In contrast, Cardano declined nearly 7%, making it one of the weakest-performing cryptocurrencies of the week. This gap in performance suggests that buying activity has become concentrated in specific projects rather than being spread across the broader market, a dynamic that is often associated with weaker overall conviction.
   

• Looking at the average performance over the past 10 weeks, the cryptocurrency market continues to display a relatively stable medium-term profile. This suggests that the selling pressure that dominated earlier in the year continues to fade gradually. However, this strength remains concentrated in a handful of assets. While Solana and Ethereum continue to post gains of more than 40% compared with levels seen ten weeks ago, assets such as Dogecoin have advanced only 2.76%. This contrast indicates that the recovery has not been evenly distributed across the market and that much of the recent resilience continues to depend on a small number of leading cryptocurrencies.
   

• The longer-term picture remains less favorable. Throughout 2026, major cryptocurrencies have remained well below their opening prices for the year, meaning that the recovery seen in previous weeks is still insufficient to meaningfully alter the broader bearish annual outlook. Cardano remains the weakest major asset, posting a decline of -38.96%, while Bitcoin continues to show greater relative stability despite still being down -11.16% for the year. Overall, the market remains in a partial recovery phase that has yet to fully erase the losses accumulated earlier in 2026.
   

• As the market's benchmark asset, Bitcoin has also struggled to sustain the strength observed during the previous week. Over the last seven days, BTC gained only around $400 and failed to hold consistently above the important psychological level of $80,000. This behavior suggests that the buying momentum which had dominated previous sessions has begun to lose strength.
   

• More broadly, the cryptocurrency market is once again displaying a less synchronized profile. Bitcoin has been unable to transmit its previous strength across the broader sector, while the strongest gains continue to be concentrated in isolated assets. As long as this dynamic persists, the lack of direction could remain an important characteristic of the market.

Colors range from red to green. Red indicates negative correlations, while green indicates positive correlations.

Source: Data - StoneX, Tradingview

From a correlation perspective, a strong positive relationship between Bitcoin and the rest of the major cryptocurrencies remains evident. Most correlation coefficients continue to hold above 0.9, suggesting that a large portion of the market is still closely following the behavior of the benchmark cryptocurrency. As always, correlation coefficients can change over time.

This remains relevant because the recent slowdown observed in Bitcoin is also beginning to spread across much of the broader cryptocurrency market. Rather than signaling a complete loss of confidence, current correlation levels suggest that BTC's ongoing consolidation phase is being reflected throughout the sector. This helps explain why the week ended with mixed performance and weaker buying conviction compared with previous sessions.

As a result, the current environment appears characterized by a slowdown in bullish momentum. As long as Bitcoin struggles to regain traction, the lack of direction could continue to dominate the behavior of most major cryptocurrencies.

 

Bitcoin Begins to Face a Slowdown

Source: StoneX, Tradingview

Just a few sessions ago, Bitcoin was posting one of its strongest rallies in months. However, recent price action has started to reflect a loss of momentum near key technical levels. Rather than confirming a new aggressive uptrend, the market appears to be entering a consolidation phase where buying pressure is beginning to moderate while traders attempt to preserve previous gains. Unless major technical barriers are broken, this dynamic could continue favoring a more neutral market environment in the sessions ahead.

Indicators:

• The MACD has begun to reflect a more visible slowdown, with the histogram gradually moving closer to the neutral 0 line. Meanwhile, the RSI has retreated from recent highs, although it remains within overbought territory above the 70 level. Together, these indicators point to fading bullish momentum, while the RSI's continued position in overbought territory suggests that room for corrective pullbacks may still exist following the strong rally seen in previous weeks.

Key Levels:

• $82,300 – Major Resistance: A key resistance zone not seen in several months and the most important upside barrier on the chart. Sustained trading above this area could confirm the continuation of bullish momentum and open the door to a stronger uptrend.
   
• $74,000 – Nearby Barrier: This level coincides with important retracement areas observed in previous weeks and represents the closest support zone. It could become the primary reference level should short-term pullbacks develop.
   
• $69,100 – Critical Support: This area aligns with the 200-period Simple Moving Average (SMA) and remains one of the most important support zones within the current structure. A move toward this region could weaken confidence in the recent recovery and favor another period of sideways trading.

 

Cardano Attempts to Preserve a Potential Trendline

Source: StoneX, Tradingview

Cardano has been one of the most affected cryptocurrencies this week and one of the assets that has struggled the most to maintain recent strength. Even so, the cryptocurrency continues to hold a potential bullish trendline that remains the most important technical feature on the chart. As long as this structure remains intact, a gradual improvement in buying pressure could help support the formation of a more established bullish trend over the coming weeks.

Indicators:

• Both the RSI and the MACD histogram remain close to their respective neutral levels at 50 and 0. This reading suggests a relatively balanced environment between buyers and sellers, supporting a neutral outlook that could remain relevant in the short term.

Key Levels:

• 23.27 – Major Resistance: This area coincides with recent highs and the 200-period SMA. A sustained move above this level could strengthen the emergence of a more convincing bullish bias and support a more established uptrend.
   
• 20.15 – Nearby Barrier: An important retracement zone that currently acts as the chart's primary equilibrium area. As long as the price remains near this level, a lack of clear direction could continue to dominate and potentially support the formation of a broader consolidation range.
   
• 17.55 – Primary Support: A level associated with previous lows that also coincides with the 50-period moving average. A sustained break below this area could invalidate the current bullish structure and create room for a more meaningful bearish bias in the weeks ahead.

 

Written by Julian Pineda, CFA, CMT – Market Analyst

Follow him on: @julianpineda25