Over the past week, NWST1100 surged by 7.75%. Crypto markets were extremely volatile, with up to 30 percent rebounds and further falls nevertheless this year crypto is an excellent investment vs equity.
*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, for the past week our assumption had been: as the first week of October 2008 on the financial markets, crypto markets were extremely volatile, full of abrupt turnarounds, with up to 30 percent rebounds and further falls. Looking at the chart NWST1100 above we can see, the price was rising to 10-days EMA (more than 30%) then it has pulled back. PPO and PPO histogram bars changed the slope, they are sloping up.
Outlook for this week
Looking ahead, the indicators give us the following signals: at the top, we can see momentum indicators, RSI is 34, PPO and PPO histogram bars could continue sloping positively in the next few days. The Breadth indicators could flatten out. This set up is the basis for my opinion: the wide sideways trend is more likely, the volatility still could be high. However, the cause of the bear trend (coronavirus) will not be eliminated, so a breakthrough to 600 points is unlikely, only a spike of 20% up or down is possible.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see crypto markets experienced a huge sell-off last month but they rebounded last week, so the total (NWST1100) index surged by 7.75% in the past week.
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. Bitcoin is often called digital gold by many of its proponents, who suggest that it is a digital alternative to the most popular safe-haven asset. They were struck by surprise when Bitcoin fell by 50% in 36 hours nevertheless this year crypto is an excellent investment vs equity. Last week NWST1100 vs. W1Dow rebounded. The pair (average crypto vs. W1Dow) has soared by 52% on the year.