Over the past week, the NWST1100 was hovering near the lower Keltner Channels line, the index was practically unchanged +0.36%. The inability to clear 10-days EMA kept the index in a sideways trading range and left open the possibility of further falling. Last month crypto leadership was coming from Ether, Large-caps, and Coins.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent the 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 had been: PPO histogram bars (blue arrow) could have changed the slope to positive, which would have been a sign of weaker downside momentum. The likelihood of a rebound to 10-days EMA was similar to the short culmination of a negative trend. On the NWST1100 chart, we can see, that the index was hovering near the lower Keltner Channels line. At the same time, its 14-day RSI was oversold, the brown PPO histogram bars have increased and the PPO lines (upper box) have flattened out. The inability to clear 10-days EMA kept the index in a sideways trading range and left open the possibility of further falling.
Looking ahead to the next week, the indicators give us the following signals: we can see that RSI is 25 and oversold, the brown PPO histogram bars could cross 0 in the next few days. That would be a sign of upside momentum. If PPO bars advance to 0 and stall it could be a failure at resistance and decline, the index will be headed to further falling. Breadth indicator McClellan summation index is flattening out. This set up is the basis, that in my opinion for the next week a more likely course is a move to the Pivot at 767 points but it is also possible that we will see another step down to the lower Bollinger line. This leaves open the possibility of retest the support near 630 points.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that the Total (NWST1100) index was practically unchanged +0.36% 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. The two major indexes NWST1100 and NWSBE acted in a similar fashion. On the Bitcoin chart below we can see a similar setup as on the chart of NWST1100. As we can see in the chart below, since mid-July, the green histogram graph (Ether) has behaved differently than the area graph (NWSBE). Last month crypto leadership was coming from Ether and Coins. Large-caps (AltCoins) have been of the market’s strongest groups.
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 the average global equity represented by Dow Jones global index W1Dow. This year average crypto vs. W1Dow soared over 44% but over the past four months, we were observing a pullback. Two weeks ago NWST1100 plummeted vs. W1Dow again and last week we were observing a consolidation.