Crypto Shows Stronger Breadth Than S&P 500 Amid Price Volatility
The S&P 500 is trading near record highs, but most of its constituents are below their 200-day moving averages. This contrasts with the top 100 cryptocurrencies, where 88 tokens are above their MAs. Market watcher Scott Melker notes that crypto's technical position looks healthier, even though many major tokens are still far from their all-time highs.
Bitcoin and Ethereum, two of the largest cryptocurrencies, were among those above their 200-day simple moving averages. Most of these assets also held above their 50-day and 100-day averages, a 'clean, bullish configuration' according to Melker.
Melker contrasts the crypto market with equities, where he believes prices have already priced in good news. He argues that weak breadth in stocks near highs has historically been a yellow flag, but strong breadth in crypto while prices remain far from peaks is the opposite setup.