2100NEWS Crypto Market Breadth Survey

Analysis of Market Direction… Timing is Everything!

Breadth indicators offer a different perspective on the markets that can’t be seen through other indicators. We use a combination of several methods and look for confluence and increase their odds. Surveys contain educational material and show how analysis approaches or tools exactly work. Market Breadth Indicators are powerful technical analysis tools that gauge the direction of the market and help determine if it’s bullish, bearish or neutral. They do so by analyzing the degree of participation in an advance or a decline to see whether or not an uptrend or downtrend is broad-based and therefore likely to continue. 

Christmas rally was only a big correction upwards, a big bear shake out. After Christmas, momentum was lost and direction of the market was neutral, trend sideways. We analyze the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent top 1100 Digital Assets and 2100NEWS Digital Assets 100 Large Cap Index (NWSL100) which represent 100 large-cap Digital Assets.

2100news Digital Assets Total Index (NWST1100)

What do these charts tell us? Looking at the breadth charts ADVL shows us choppy up and down graph. The ADVP should be positive or negative for more than two consecutive days in order to create a positive or negative trend on the market. The market price moves due to an increase in demand or supply. The meaning of demand and supply is nothing but volumeADVP is a breadth statistic based on Net Advancing Volume, which is the volume of advancing digital assets less the volume of declining. ADVP is weighted towards large-caps. McClellan summation index is lagging indicator vs. ADVL and with it, we are looking for confirmation. it is still positive and slightly growing.

It could be that potentially is forming an inverted head and shoulders pattern (red line – shoulders). However, we could also simply be continuing the downtrend by forming another lower high. At this point, it isn’t immediately clear which way the market will move. Sideways price action last ten days is due to the fact that the market did not have the energy (momentum) to become bullish (RSI <60). The market is always moving in the waves, the wave of PPO histogram shows that it can follow a few days of a negative wave. If buyers think that this is a buying opportunity, the index value will remain in the surroundings of the pivot. The trading range could be between 415 and 500 points. On the downside, if the price fails to hold the 415 level, we could see a powerful selloff in the market, potentially taking us down to 350. 

 

2100news Digital Assets 100 Large Cap  Index (NWSL100)

Looking at the breadth charts ADVL shows us choppy up and down graph. The ADVP should be positive or negative for more than two consecutive days in order to create a positive or negative trend on the market. McClellan summation index is lagging indicator vs. ADVL and with it, we are looking for confirmation. it is still positive and slightly growing.

Large-cap Digital Assets have similar charts as total market.  Sideways price action last ten days is due to the fact that the market did not have the energy (momentum) to become bullish (RSI <60). The wave of PPO histogram shows that it can follow a few days of a negative wave. If buyers think that this is a buying opportunity, the index value will remain in the surroundings of the pivot. The trading range could be between 400 and 470 points. On the downside, if the price fails to hold the 395 level, we could see a powerful selloff in the market, potentially taking us down to 320. 

 

2100NEWS DA Ethereum Based Index (NWSET100) vs ETH

2100NEWS DA Factor Indexes are designed to capture the return of factors that are common to individual groups of digital assets at crypto markets.  A very interesting finding comes when we look what was the behavior of Ethereum based tokens vs Ether in the Christmas rally and after it. We can see on the chart that Ethereum based tokens lost 33% vs. Ether. This tells us, that investors were selling tokens and buying Ether. 

 

2100NEWS DA Coin Index (NWSCo100) vs 2100NEWS DA Ethereum Based Index (NWSET100)

The second very interesting finding comes when we look what was the behavior of Coin Index vs Ethereum based tokens. On the chart, we can see that Coins are the better performer in whole market rallies. They started the Christmas rally (blue arrow) and performed almost 19% better than Ethereum based Tokens. In a bearish or sideways market, Coins are a worse performer than Ethereum based Tokens.

 


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We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


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