The cryptocurrency sector is exhibiting strong bearish trends as the year draws to a close.
Currently, TradingView data reveals that 75 out of the top 100 cryptocurrencies by market capitalization are trading below both their 50-day and 200-day simple moving averages (SMAs), signaling widespread weakness throughout the digital asset landscape.
This trend reflects a significant withdrawal of capital from the crypto space following bitcoin’s decline from its peak above $126,000 in early October to around $87,000 at present.
The 50- and 200-day SMAs serve to smooth out daily price fluctuations and highlight broader momentum changes. These indicators act like boundaries: when prices fall beneath both averages, it suggests underperformance relative to short- and long-term trends, often triggering intensified selling pressure and sharper declines.
In contrast, only 29 stocks within the Nasdaq 100 exhibit similar weakness, underscoring continued bullish sentiment among technology equities. Bitcoin’s price movements tend to closely follow Nasdaq trends, which can amplify downward swings during bearish periods.
The Bearish Hold Strengthens
Among those trading below these critical averages are major players such as bitcoin (BTC), ether (ETH), solana (SOL), BNB (BNB), and XRP—all collectively representing approximately 78% of crypto’s $3 trillion market valuation.
Put simply, these leading cryptocurrencies are showing red flags across technical charts, pulling down the entire market much like an anchor dragging a ship underwater.
These assets represent some of the most liquid instruments favored by institutional investors through vehicles like CME futures contracts and spot ETFs. Negative signals from this group typically prompt caution among investors who then hesitate to take risks on smaller or less liquid altcoins.
A decline in overall market breadth such as this has historically preceded further downturns in crypto markets.
A Limited Number Are Oversold
Only eight coins within the top hundred meet oversold criteria based on their relative strength index (RSI) readings while also trading below both key SMAs. These coins include PI, APT, ALGO, FLARE, VET, JUPITER (JUP), IPCHAIN (IP), and KAIA COIN (KAIA).
This layered analysis provides clarity: although many coins have breached important moving averages indicating downtrends broadly across markets; when filtering for RSI-based oversold conditions—which measure exhausted selling pressure—the list narrows significantly. This implies that most cryptocurrencies have not yet reached panic lows and could continue declining further before stabilizing.
Market participants interpret this scenario as confirmation of bearish momentum with additional downside likely before any substantial recovery occurs.
The RSI is calculated over a fourteen-day period on a scale from zero to one hundred; values below thirty suggest an asset may be oversold—indicating potential for consolidation or rebound—while readings above eighty indicate overbought conditions prone to correction soon after.