“Market Bredth Indicators Help Assess of the Overall Health of A Market or Index.”, – WRITE: www.coindesk.com
BRAADTH is typically measured by comparing the Number of Advance Stocks or Cryptocurrencies to Those Declining. Traders Also Analyze The Number of Assets Trading Above or Below Key MOVING AVERASES-SUCH AS The 50-Day and 200-Day Smas-Toto Assess Both Short-Term and Long-Term Market Trends. This Article Focusses Specificly On these Moving AVERAGE-BRAADTH INDICATORS.
As of Writing, 63 of the Top 100 Cryptocurrencies by Market Value, Including Bitcoin
Traded Above Their Respect 200-Day Simple Moving AVERAGE
(SMA)
accounting to data source Tradingview.
The Top 100 Coins Have Market Capitalizations of Over $ 1 Billion and Are Less Prone to Price Manipulation Than Their Smaller Counterparts.
At the Same Time, 50 Coins Traded Below Their 50-Day Smas.
Interestingly, Nasdaq, WHICH COMPRISES 100 Stocks, Displayed A Similar Profile On Monday, With 61 Stocks Trading Above Their 200-Day Smas and 49 Below Their 50-Day Smas.
ImplicationsThe Data Indicates that the Long-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 US A BAROMETER FOR Long-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-TRIM TREEN INDICATOR. A price below this average Suggests a recent of loss of momentsum 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 Cryptocurrent. 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.
Read More: Crypto Traders Eye Jackson Hole As Ether, XRP, Solana Drop Sharply in Retreat
Omkar Holds A Master’s Degree in Finance and A Charterred Market Technician (CMT) Designation.
X Icon
Regulators Froze New Lending Products AfterCed Liquidations and Market Distortions, But Some Analysts Say Improvements, Not Shutdowns, Are The Smarter Path Forward.
- South Korea’s Financial Services Commission Has Suspended New Crypto Lending Products to Mitigate Risks to Users and Market Stability.
- The Decision Follows Conceerns About Increase Leverage in Crypto Markets and A Recent $ 1 Billion Liquidation Event.
- Critics Argue for Improved Safeguards and Transparency Racher than A Complete Shutdown of Lending Services.
Read Full Story