Crypto and Nasdaq Show Bullish Long-Term, Bearish Short-Term

Market breadth indicators, which measure the health of a market by comparing advancing versus declining assets, show a clear divergence in trends for both crypto and the tech-heavy Nasdaq. A majority of the top 100 cryptocurrencies and Nasdaq stocks are trading above their 200-day moving averages, a key barometer for a long-term bullish trend. This suggests the foundational uptrend for both asset classes remains intact despite recent price volatility.

However, the short-term outlook is steadily worsening. Approximately 50% of assets in both markets are now trading below their 50-day moving averages, indicating a recent loss of momentum and potential for a near-term downtrend. The identical weakness across these two distinct markets implies this is not an isolated event but a broader phenomenon affecting risk assets.

This widespread de-risking is likely a reaction from traders positioning their portfolios cautiously ahead of Federal Reserve Chairman Jerome Powell’s impending speech at the Jackson Hole economic symposium. The simultaneous pullback highlights the growing correlation between cryptocurrency and traditional tech markets.

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