Bitcoin’s Bull Run Hitting a Wall? Decoding the Crypto and Nasdaq Market Breadth Signals

Bitcoin's rally might be running out of gas—but don’t panic-sell just yet. Here’s what the market breadth across crypto and traditional finance is screaming.

Nasdaq’s sideways shuffle and crypto’s cooling momentum hint at a potential inflection point. Are whales cashing out, or is this just another pit stop before the next leg up?

Market breadth—the unsung hero of trend analysis—paints a murky picture. Fewer tokens are hitting new highs, and even fewer Nasdaq stocks are leading the charge. Classic ‘risk-off’ vibes or just Wall Street’s usual theatrics?

One thing’s clear: volatility is back on the menu. Whether you’re a diamond-handed HODLer or a swing trader chasing pumps, buckle up. And hey—if all else fails, there’s always the ‘institutional adoption’ narrative to fall back on (until that too gets debunked).

Implications

The data indicates that the long-term trend for both markets remains bullish with a clear majority of assets trading above their 200-day SMAs. The 200-day average is widely tracked as a barometer for long-term trends by both retail and institutional investors.

That said, the immediate outlook is steadily worsening as 50% of assets in both markets trade below the 50-day SMA, which is a short-term trend indicator. A price below this average suggests a recent loss of momentum and a potential short-term downtrend.

The identical market breadth of the two markets suggests that the short-term weakness is not an isolated event, but a widespread phenomenon affecting both cryptocurrency and traditional markets. Perhaps, traders in both markets are de-risking their portfolios ahead of the impending speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium this week.