The crypto market is entering a fragile stretch this week, with one industry analyst breaking down the factors behind the latest wave of weakness.
According to market commentator Joseph Young, traders expected faster economic data releases following the U.S. government’s reopening. However, the anticipated momentum never materialized.
Instead, the market is now dealing with a combination of a sharp correction in the AI sector and a rotation out of big tech into healthcare and low-PE stocks, creating a drag across major digital assets.
Young added that Ethereum is in a far healthier position beneath the surface, despite broader market softness. Its open interest has reset to April levels, when ETH was trading near $1,400, reducing the excess leverage that often fuels deeper sell-offs.
Yet, fundamental metrics are at all-time highs, the developer community is more active than ever, and the network continues scaling quickly without compromising security.
Bitcoin, however, is showing a clearer snapshot of market pressure. As noted by thescalpingpro, BTC failed to reclaim the 300-day moving average for the first time this cycle, breaking a pattern that had previously marked every significant rebound since the market bottom.
In prior pullbacks, dips below the 300-day MA were brief and followed by strong recoveries. This time, BTC attempted to regain the level but faced a firm rejection, extending the downtrend and raising doubts about short-term momentum.
Bitcoin’s technical picture has compounded that weakness. The asset has dropped nearly 15% since early November, splitting traders between those expecting a deeper correction and those viewing the move as an oversized dip within the cycle.
For now, market weakness persists, but the next decisive move is likely to depend on how Bitcoin behaves around this critical price band.
Source: https://zycrypto.com/prominent-crypto-trader-shares-factors-strengthening-market-weakness/
