2100NEWS Crypto Market Breadth Survey

Analysis of Market Direction… Timing is Everything!

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 offer a different perspective on the markets that can’t be seen through other indicators 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. We use a combination of several methods and look for confluence and increase their odds.

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. In the last 2100News crypto market breadth survey we were observing the neutral direction of the market and sideways price action, the path of least resistance was to the downside. Since early January, for over three weeks we have seen confusing moves in a sideways trend where traders tend to lose most of their trading capital because the moves are extremely random most of the time. 

2100news Digital Assets Total Index (NWST1100)

Looking at the breadth charts ADVL shows us choppy up and down graph. ADVP 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. ADVL and McClellan summation index was declining. Since early January, for over three weeks McClellan oscillator has been predominantly negative. On the McClellan summation index chart below we can see, that the direction of the market turns to bearish is almost confirmed.

Sideways price action lasts almost one month. Bears had more dominance in the market. The market is always moving in the waves, last three weeks the wave of PPO, and PPO histogram show a negative wave. On the chart, we can see a bullish flag pattern. I am still open for bullish and bearish scenarios at this point. Market shows signs of bearish direction (RSI < 40), support zone did not hold. On the downside, the target is near 350 points, but it is important we don’t make a big dump that we see clear buying support. As soon as that support zone around 350 really breaks with normal/high volume, things could get very ugly. We could even see a lot of panics. On the upside, reversal is 5% higher.

 

2100news Digital Assets 100 Large Cap  Index (NWSL100)

Looking at the breadth charts ADVL shows us choppy up and down graph. McClellan summation index is lagging indicator vs. ADVL and with it, we are looking for confirmation. Since early January, for over three weeks McClellan oscillator has been predominantly negative. ADVL and McClellan summation index was declining. The McClellan summation index chart below shows, we are near confirmation that the direction of the market turns to bearish.

Large-cap Digital Assets have similar charts as total market. Last three weeks the wave of PPO, and PPO histogram show a negative wave. On the chart, we can see a bullish flag pattern. Market shows signs of bearish direction (RSI < 40). On the downside, the target is near 320 points, but it is important we don’t make a big dump that we see clear buying support. As soon as that support zone around 320 really breaks, things could get very ugly. On the upside, reversal is near 370 points. 

Ratio of different groups of Digital Assets (Coins and Tokens)

The 2100NEWS DA Factor Indexes  was developed to show that different groups of Digital Assets behave differently in certain market conditions. An excellent indicator that gauges the direction change to bullish is Coins to Tokens ratio. On the chart below, we can see 2100NEWS DA Coin Index (NWSCo100) and 2100NEWS DA Ethereum Tokens Index (NWSET100), when this ratio soars a market trend turns to bullish. 

 

 


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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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