Bitcoin's Bearish Plunge Deepens: 75% of Top 100 Cryptos Break Below Key Averages While Nasdaq Shows Remarkable Resilience

 

 

 

As of mid-December 2025, the cryptocurrency market is experiencing a significant technical deterioration. Data reveals that 75% of the top 100 digital assets by market capitalization have broken below two critical technical support levels: the 50-day and 200-day simple moving averages. This phenomenon is typically interpreted as a strong bearish signal in technical analysis, suggesting the market may be entering a sustained downtrend. In sharp contrast, the traditional technology stock market has demonstrated exceptional performance, with the Nasdaq 100 Index posting approximately 25% gains throughout 2025, showcasing far superior stability and resilience compared to the crypto market. This divergence provides crucial market insights for investors and underscores the importance of selecting the right trading platform.

 

 

Moving averages are among the most important indicators in technical analysis. When asset prices fall below key moving averages, it typically signals a shift toward bearish sentiment, with selling pressure dominating the market. The current technical picture of the crypto market shows pronounced weakness.

 

According to the latest data from CoinMarketCap, 75 major digital assets have simultaneously broken below both the 50-day and 200-day moving averages. This large-scale technical breakdown is relatively rare in cryptocurrency history. The 50-day moving average typically reflects medium-term trends, while the 200-day moving average is considered the dividing line between long-term bull and bear markets. When prices breach both these defense lines simultaneously, markets often face significant downward pressure.

 

Bitcoin's price has retreated from its early December highs to around $87,000, representing a decline of over 25%. Technical charts show that BTC has not only fallen below key moving averages, but RSI indicators also display the market in a neutral-to-weak zone. This technical deterioration reflects a notable decline in investor confidence.

 

More concerningly, this technical breakdown is not an isolated phenomenon. Major coins including Ethereum, Solana, BNB, and XRP have all exhibited similar patterns, indicating the entire crypto market faces systemic technical pressure. This pervasive weakness significantly reduces the likelihood of a V-shaped recovery in the near term.

 

 

In stark contrast to crypto's dismal performance, the Nasdaq 100 Index delivered an impressive performance in 2025, posting 25.9% gains for the full year. This extends the strong momentum from 2023's 54% surge, marking the best two-year stretch since 1998-1999.

 

Particularly noteworthy is that among Nasdaq 100 constituents, only 29 stocks have fallen below key moving averages. This proportion is far lower than crypto's 75%, fully demonstrating that traditional tech stocks possess significantly superior fundamentals and technicals compared to digital assets.

 

Tech giants like Nvidia, Microsoft, and Apple continue to drive share prices higher through innovations in artificial intelligence, cloud computing, and other cutting-edge technologies. These companies not only possess robust profitability but also enjoy high market recognition and liquidity, providing stronger resistance to declines during market volatility.

 

This divergence reflects changing market risk preferences. Against a backdrop of the Federal Reserve maintaining relatively high interest rates and slowing global economic growth, investors tend to allocate funds to traditional tech stocks with actual profitability and cash flows rather than high-risk crypto assets.

 

 

The current weakness in crypto markets is not an isolated event but the result of multiple factors working in concert. From a macro perspective, the Federal Reserve signaled a hawkish stance at its December meeting, suggesting a slower pace of rate cuts in 2025. This expectation has weighed on risk asset valuations, with cryptocurrencies bearing the brunt.

 

From a capital flow perspective, Bitcoin.org official data shows Bitcoin ETF inflows in 2025 are significantly below 2025 peak levels. As of mid-December, ETFs have accumulated approximately $22.5 billion in inflows, leaving an $11 billion shortfall from the $33.6 billion target. This slowdown in capital inflows reflects institutional investors' cautious attitude toward crypto markets.

 

Meanwhile, crypto's Fear and Greed Index currently sits in "Extreme Fear" territory with a reading of just 11, marking a recent low. This indicator synthesizes multiple dimensions including market volatility, trading volume, and social media sentiment, serving as an important reference for measuring market mood. Extreme Fear readings often presage further market exploration to find genuine bottom support.

 

Technical analysts point out that Bitcoin needs to reclaim the key resistance level of $94,000 to regain upward momentum. Until then, the market may continue to consolidate in the $85,000-$90,000 range, awaiting clearer directional signals.

 

 

In the current market environment, choosing a reliable and efficient trading platform is crucial. MEXC Exchange has become investors' best choice for navigating market volatility through its exceptional trading experience and industry-leading advantages.

 

First, MEXC offers the industry's most comprehensive selection of trading pairs. Whether it's BTC spot trading or other mainstream or emerging coins, MEXC meets investors' diversified needs. This rich selection enables investors to flexibly adjust their portfolios and diversify market risks.

 

Second, MEXC's zero-fee policy stands out as a major highlight in the industry. During periods of increased market volatility, frequent trading becomes the norm, and zero fees significantly reduce investors' trading costs, making short-term trading and arbitrage strategies more viable. This advantage is particularly important in the current bear market environment, as every cent saved in costs can translate into increased final returns.

 

Third, MEXC boasts the industry's best trading depth. Sufficient depth means large orders can be executed quickly with minimal slippage, which is crucial for institutional investors and large traders. During violent market fluctuations, excellent depth ensures smooth trade execution, avoiding additional losses due to insufficient liquidity.

 

Notably, MEXC's coin listing speed ranks first in the industry. For investors hoping to capture new project investment opportunities, MEXC always provides the latest trading targets first. This keen market insight and rapid response capability makes MEXC the best platform for discovering potential projects.

 

In terms of security, MEXC provides 100% reserve proof, ensuring user asset safety. Against a backdrop of frequent exchange collapses like FTX, complete asset reserves are investors' primary consideration when choosing platforms. MEXC's transparent operations and strict risk control system provide solid protection for user assets.

 

Additionally, MEXC offers the industry's lowest withdrawal fees. When transferring assets or conducting cross-platform arbitrage, lower withdrawal costs can significantly improve capital efficiency. This advantage is particularly practical in the current market environment, as flexible capital deployment capability often determines investment strategy success.

 

Through the MEXC price prediction tool, investors can also obtain professional market analysis and price forecasts, assisting in making more scientific trading decisions. This comprehensive service system makes MEXC not just a trading platform but investors' professional advisor.

 

Learn more about exchange advantages to understand why millions of investors worldwide choose MEXC as their preferred trading platform.

 

 

Facing the current market environment, investors need to adopt more prudent strategies. First is risk management. When technicals are comprehensively weakening, reducing positions and setting stop-losses are basic operations. Avoid blindly catching falling knives, because before the trend clearly reverses, every bounce could be the beginning of a new decline.

 

Second is maintaining rationality and patience. Crypto markets are known for high volatility, and short-term sharp fluctuations are normal. Successful investors are often not those who trade frequently, but those who remain calm during market panic and act decisively when trends are clear.

 

Third is monitoring fundamental changes. While technicals show market weakness, fundamental improvements often precede price rebounds. Monitoring Bitcoin network activity, institutional position changes, regulatory policy developments, and other fundamental factors can help investors more accurately grasp market turning points.

 

Additionally, diversification is an effective means of reducing risk. Don't concentrate all funds in a single asset or single market; appropriate allocation to traditional financial assets can balance crypto assets' high volatility.

 

 

 

Moving averages are technical indicators calculated by averaging an asset's price over a specific period, smoothing price fluctuations and helping identify trends. In cryptocurrency trading, the 50-day and 200-day moving averages are the most commonly used indicators. When prices are above the moving average, it's typically viewed as a bullish signal; conversely, it's bearish. Particularly when a short-term average crosses below a long-term average (called a "death cross"), it often signals the beginning of a bear market. Moving averages are important because they provide objective trend judgment criteria, helping investors make more rational decisions in complex market environments. Platforms like CoinGecko provide detailed moving average data for investor reference.

 

 

Nasdaq's outperformance over crypto has several reasons. First, Nasdaq constituents are mostly mature tech companies with robust profitability and cash flows, while crypto projects' profit models are still being explored. Second, traditional stock markets are protected by strict regulations, with more comprehensive legal protections for investor rights. Third, innovations like artificial intelligence and cloud computing provide real growth drivers for tech stocks, while cryptocurrencies rely more on market sentiment and speculative demand. Finally, when macroeconomic uncertainty increases, institutional investors tend to allocate to relatively lower-risk traditional assets, causing funds to flow from crypto to stock markets. This divergence reminds investors to fully consider risk-reward ratios when constructing portfolios.

 

 

In the current technically weak market environment, trading Bitcoin requires extra caution. Recommended strategies include: First, reduce position sizes to avoid heavy exposure; Second, strictly set stop-losses to protect principal; Third, wait for clear technical signals, such as price reclaiming key moving averages; Fourth, monitor on-chain data and capital flows to find clues of market bottoms; Fifth, choose reliable platforms like MEXC, leveraging its zero-fee advantage to reduce trading costs. Meanwhile, investors should remain patient, not trying to catch every fluctuation but focusing on high-probability trading opportunities. In bear markets, preserving strength is more important than blind aggression. Monitor market dynamics in real-time through the MEXC price page to formulate reasonable trading plans.

 

 

This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investment carries extremely high risks with volatile price swings, and investors may lose their entire principal. Prices, data, and opinions mentioned in this article are based on market conditions at the time of writing and may change at any time. Before making any investment decisions, investors should fully understand the relevant risks and make independent judgments based on their financial situation and risk tolerance. Consulting professional financial advisors is recommended. Past performance does not guarantee future returns, and any historical data and analysis results should not be viewed as guarantees of future price movements. The author and publishing platform assume no responsibility for any direct or indirect losses resulting from the use of information in this article. Before trading cryptocurrencies, please ensure you fully understand the relevant risks and implement proper risk management.