Market breadth indicators reveal that both the cryptocurrency market and the Nasdaq are exhibiting short-term weaknesses despite a long-term bullish trend. A majority of top cryptocurrencies, along with Nasdaq stocks, are trading above their 200-day simple moving averages (SMA), signaling a positive long-term outlook. However, with 50% of assets in both sectors now trading below their 50-day SMAs, there are signs of a potential short-term downtrend and loss of momentum. This trend of consistent breadth in both markets suggests that traders are possibly de-risking their portfolios ahead of anticipated statements from Federal Reserve Chairman Jerome Powell, reflecting a broader phenomenon affecting both crypto and traditional equities. Investors may need to be cautious amidst these conflicting signals, which reveal a healthy long-term trend alongside a short-term pullback.

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