Bitcoin’s Bull Run Hitting a Wall? Crypto & Nasdaq Breadth Signals You Can’t Ignore

Bitcoin's rally might be running out of gas—but don't just take our word for it. The crypto and Nasdaq market breadth indicators are flashing warning signs.

What's really happening under the hood? Let's break it down.

Market breadth—the unsung hero of trend analysis—is whispering what price charts won't say outright. When fewer assets participate in the rally, even Bitcoin's ATHs start looking shaky.

Meanwhile, traditional finance bros are still trying to short crypto with their 'risk management' strategies—how's that working out for them?

One thing's clear: the smart money watches breadth, not just price. And right now? The tape's telling an interesting story.

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.