Over the past week, NWST1100 increased by 1.79%. The Total index rose to its peak but has lost traction. Last two weeks crypto leadership was coming from Ether, Large-caps, and Coins. The market capitalization of a whole crypto ecosystem has not grown, Bitcoin was being sold to buy ALT coins.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent top 1100 Digital Assets. The chart overwhelmed with information is at first glance difficult to read but on the chart is the most important price information, important decisive price levels, momentum, volume of trading, and crypto market breadth.
In the previous report, it was said that our assumption has been: more likely course would be a move to break upper trendline. On the NWST1100 chart we can see, that index rose to its peak but has lost traction at or above that price point. It was trading at its 10-days and 25-days EMA but it did not clear some upside resistance barriers. At the same time, its 14-day RSI lines, the brown PPO histogram bars, and the PPO lines (upper box) have changed the slope. That was a sign that upside momentum succumbed to bearish pressure. We need to be aware that in the last month the market capitalization of a whole crypto ecosystem has not grown, Bitcoin was being sold to buy ALT coins. On the table below we can see that Large caps represented by index NWSL100 and coins represented by NWSCo100 have reported the biggest gains in the last two weeks.
Looking ahead to the next week, the indicators give us the following signals: we can see that RSI is 42 and declining, the brown PPO histogram bars could turn more negative in the next few days. That would be a sign of stronger downside momentum. Breadth indicator McClellan summation index and ADVP a breadth statistic based on Net Advancing Volume are raising. This set up is the basis for our assumption, that for the next week is a more likely course a move to the lower Bollinger. This leaves open the possibility of retest the support near 800 points.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that Total (NWST1100) index increased by 1.79% in the past week.
Digital Assets decoupling
The breakdown of the market into groups represented by 2100NEWS DA indexes enables us to measure decoupling much more accurately than can do others who do not have the tools in the form of a full range of indexes. Last two weeks crypto leadership was coming from Ether, Large-caps, and Coins. On the Ether chart below we can see a different setup as on the chart of NWST1100 (the PPO lines are above 0). Large-caps (AltCoins) have been one of the market’s strongest group.
Crypto (Digital Assets) compared with global equity
On the chart below, the performance of the average Digital Aset represented by our NWST1100 index is compared with average global equity represented by Dow Jones global index W1Dow. This year average crypto vs. W1Dow soared over 75% but over the past 15 weeks, we were observing a consolidation. Last 11 weeks NWST1100 reported 29.4% loss vs. W1Dow.