As the end of the year looms, the pressure on the cryptocurrency market is mounting substantially. Data from TradingView reveals that 75 out of the top 100 cryptocurrencies by market capitalization are trading below both the 50 and 200-day simple moving averages (SMA). This trend was exacerbated when Bitcoin 
$77,560’s price fell from $126,000 to $87,000, triggering an acceleration in capital outflows and a notable decline in risk appetite. Meanwhile, the Nasdaq index continues to exhibit resilience, buoyed by technology stocks.
A Descent Below Critical Averages Signals Heightened Risk
Major cryptocurrencies such as Bitcoin, Ethereum 
$2,318, Solana 
$86, BNB, and XRP are currently trading in technically weak zones. These five digital assets represent approximately 78% of the cryptocurrency market and significantly influence its overall direction. Plummeting below both short- and long-term averages erodes investor confidence in trend reversals, intensifying the wave of sell-offs.
In technical analysis, the 50 and 200-day averages are crucial indicators of market momentum. A decline below these thresholds indicates waning medium-to-long-term momentum and the potential expansion of a bearish phase. Currently, 75 of the top 100 cryptocurrencies remaining below this zone signal widespread weakness across the market.
In contrast, only 29 stocks within the Nasdaq 100 exhibit similar technical weaknesses. This discrepancy suggests that traditional technology stocks still retain a positive trend, yet potential declines in Bitcoin could amplify adverse impacts due to its correlation with Nasdaq.
Scarcity of Cryptos Showing Oversold Signals
Among the top 100 cryptocurrencies, only eight are in the oversold territory according to the Relative Strength Index (RSI). These assets include PI, APT, ALGO, FLARE, VET, JUP, IP, and KAIA. Although these altcoins, having RSI values below 30, indicate a “steep decline” in the short term, it suggests that the market overall hasn’t yet hit rock bottom.
For investors, this scenario implies that a complete panic sell-off has not yet occurred. The RSI indicator operates within a 0-100 range, with values below 30 denoting oversold conditions. However, since most major cryptocurrencies have not reached this zone, the prevailing downtrend is likely to persist.
Broad SMA breakdowns and limited RSI signals diminish expectations for a near-term market recovery, according to analysts. This situation has become a major factor suppressing the risk appetite of both institutional and individual traders.
