Bitcoin Stabilizes, but Altcoin Weakness Persists With Only 29 of Top 100 Above 50-Day Average

Bitcoin has stabilized from last month's low, but the recovery has yet to spread across the broader altcoin market.

CoinDesk reported on July 28 that Bitcoin (BTC) and Ether (ETH) continue to trade above their 50-day simple moving averages despite recent weakness. By contrast, only 29 of the top 100 cryptocurrencies by market capitalization were trading above the 50-day line.

The 50-day moving average is a gauge of short-term price momentum. When an asset trades above that level, it is generally taken as a sign that the uptrend may continue. In the Nasdaq 100, 47 stocks were above their 50-day averages, a stronger showing than in the crypto market.

CoinDesk said Bitcoin regained stability after halting its slide below $58,000 on July 1, but sentiment across altcoins remains weak. Still, Ether has recently outperformed Bitcoin, leaving open the possibility that buying interest could spread into altcoins.

Markets are watching the Federal Reserve's interest-rate decision on July 29. Matthew Ryan, head of market strategy at Ebury, said the possibility of a September rate increase has already been priced into futures markets, making it difficult for any hawkish surprise to deliver a major boost to the dollar.

The crypto market's internal momentum has also weakened after the U.S. Senate delayed a vote on the CLARITY Act. Marex analysts said a catalyst that had been expected to attract institutional buying has, for now, disappeared.