The width of the market, a key indicator used to understand the overall health of a market or index, indicates that both Crypto Market and Wall Street’s tech-heavy index, Nasdaq, are experiencing short-term weakness within a long-term uptrend.
Width is typically measured by comparing the number of progress stocks or cryptocurrencies with those who fall. Dealers also analyze the number of assets that act above or under key surveillance average-such as 50-day and 200-day SMAs to assess both short-term and long-term market trends. This article specifically focuses on these sliding average -based width indicators.
From writing, 63 of the 100 best cryptocurrencies by market value, including Bitcoin
acted over their respective 200-day simple sliding average (SMA)According to data source trading.
The top 100 coins have market capitalization of over $ 1 billion and are less prone to price manipulation than their smaller colleagues.
At the same time, 50 coins traded during their 50-day SMAs.
Interestingly, Nasdaq, which includes 100 shares, showed a similar profile Monday with 61 shares trading over their 200-day SMAs and 49 during their 50-day SMAs.
Implications
The data shows that the long-term trend for both markets remains Bullish with a clear majority of assets acting over their 200-day SMAs. The 200-day average is widely traced as a barometer for long-term trends of both retail and institutional investors.
That said, the immediate views are steadily worsened when 50% of assets in both markets act during 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 downward downward.
The width of the identical market of the two markets suggests that short -term weakness is not an isolated event, but a widespread phenomenon that affects both cryptocurrency and traditional markets. Perhaps the traders in both markets are risking their portfolios prior to the impending speech by Federal Reserve President Jerome Powell at the Jackson Hole Symposium this week.
Read more: Crypto Traders Eye Jackson Hole as Ether, XRP, Solana Drop sharply in retreat
