Over the past week, the NWST1100 was ranging at the bottom half of the Bollinger Bands. NWST1100 has continued to fend off support the lower Keltner Channels indicator’s line and bounced off that line, the index declined 2.6%. Last month crypto leadership was coming from Ethereum tokens represented by index NWSET100.
*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 for the past week had been: a sideways trend with a likelihood of a move up to resistance at 800 points was similar to a new bottom test (700 points). On the NWST1100 chart, we can see, that the index price has been ranging at the bottom half of the Bollinger Bands. NWST1100 has continued to fend off support the lower Keltner Channels indicator’s line and bounced off that line, the NWST1100 seems to have found a bottom for the time being.
Looking ahead to the next week, the indicators give us the following signals: we can see that the Relative Strength Index (RSI) is 40 and isn’t showing us much, the brown PPO histogram bars could stay positive, the result – PPO lines will continue sloping positively in the next few days. That would be a sign of upside momentum. Breadth indicator McClellan summation index is flattening out. This set up is the basis, that in my opinion for the next week NWST1100 is headed to the Pivot at 764 points, less likely but it is also possible that we will see another step down to the lower Bollinger line.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that the Total (NWST1100) index declined +2.6% 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 NWSET100 chart below we can see, since the end of October, the brown graph (NWSET100) has behaved differently than the area graph (NWSBE). Last month crypto leadership was coming from NWSET100 which represents Ethereum Tokens. They have been 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 the average global equity represented by Dow Jones global index W1Dow. This year average crypto vs. W1Dow soared over 41% but over the past four months, we were observing a pullback. A month ago NWST1100 plummeted vs. The double bottom was formed in October, a potential reversal may be likely, this week could be the turning point.