The cryptocurrency market is signaling significant bearish trends as we near the year’s end.
Currently, data from TradingView indicates that 75 of the top 100 coins by market capitalization are trading below both their 50-day and 200-day simple moving averages (SMAs), reflecting widespread weakness in the digital asset sector.
This trend suggests a withdrawal of capital from the crypto space coinciding with industry leader bitcoin’s drop to $87,000 from a peak of over $126,000 earlier in October.
The 50- and 100-day SMAs help filter out daily fluctuations and provide clarity on price movements to identify larger trends, with traders and investors closely monitoring them. They serve as guidelines: falling below both indicates underperformance against both short and long-term trends, frequently sparking increased selling and rapid declines.
In stark contrast, only 29 Nasdaq 100 stocks exhibit similar weakness, underlining the resilience of technology stocks. Bitcoin is known to closely follow Nasdaq trends, magnifying downturns in bearish markets.
Bear grip tightens
Included in the 75 coins below these critical averages are major players like bitcoin, ether , solana , BNB , and , which together account for 78% of crypto’s $3 trillion market capitalization.
In essence, the leading coins are reflecting negative trends, weighing on the entire sector like an anchor dragging down a ship.
These assets are the most liquid and widely traded among institutions, supporting products such as CME futures and spot ETFs. A bearish trend from them prompts caution, making investors less likely to take risks on smaller, illiquid altcoins.
This kind of limited market breadth has traditionally led to greater downturns.
Only 8 coins oversold
Only eight of the top 100 coins are considered oversold on the relative strength index (RSI), even after filtering the 75 coins trading below their 50- and 200-day SMAs. These include PI, APT, ALGO, FLARE, VET, JUP, IP, KAIA.
This multi-layered perspective clarifies the situation: while the broad SMA breakdown indicates widespread downtrends, applying the RSI oversold filter reveals only 8 coins. This suggests that most cryptocurrencies have not reached panic levels yet and may have further room to decline.
Traders view this as confirmation of bearish sentiment, indicating more downside exists before any significant bullish recovery begins.
The 14-day RSI assesses recent price movements on a 0-100 scale. Values below 30 are indicative of oversold conditions, suggesting the asset has dropped too quickly and may either consolidate or rebound. Conversely, readings above 80 indicate overbought conditions.
