Over the past week, NWST1100 declined by 2.33%. During the first five days of the week, the index price was hovering in the upper Keltner band. Then a strong pullback happened in the last two days. This year crypto investment represented by NWST1000 has outperformed W1Dow (global equity) by 51%.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represents the top 1100 Digital Assets. The information-laden chart is difficult to read at first glance but the chart shows key price information, important decisive price levels, momentum, trading volumes, and crypto market breadth.
The previous report showed, that our assumption for the last week had been: a weak uptrend was more likely. The price of theNWST1100 index could test 900 points (+6%). A retreat to Pivot (800 points) is also possible. The NWST1100 chart shows that during the first five days of the week, bulls controlled the index, the index price was hovering in the upper Keltner band. In the last two days, the index experienced a pullback, so we saw a retreat to Pivot – 800 points. At the top we see momentum indicators: RSI, PPO histogram, and PPO, they continued falling.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 40- (not yet bearish); the PPO histogram bars and the PPO may continue sloping down in the coming days. PPO line nearing the zero line, indicating that the underlying trend has not yet turned bearish. At the bottom of the chart, we see the Breadth indicators that could go down or remain flat. Critical short term support levels are considered to be 770 and 740 points. The main question is: “Will the support level represented by the 143-day EMA (working days) hold or will it fall?” Since the beginning of May, it will be the third attempt to break through the support levels which usually succeeds. If the price of the NWST1100 falls at both levels and remains in the 700s, we expect the index to fall to as low as 680 points. This set up is the basis for my opinion: Index is on the limit where the trend could turn downward. the continuation of the decline is more likely. If the supports hold, a quick rebound will follow.
Performance of different groups of Digital Assets (Coins and Tokens)
The crypto markets peaked in the last week, the table shows that the total (NWST1100) index decreased by 2.33%. Coins index NWSCo100 was the weakest.
Crypto (Digital Assets) compared with global equity
The chart below compares the performance of the average represented by our NWST1100 Digital Asset index with the average global share represented by the Dow Jones global W1Dow index. This year the NWST1100 outperformed W1Dow twice by 60%. The first wave up was an extended Christmas rally. In January the pair then suffered a slump caused by the corona pandemic, and the crypto markets had fallen more than the equity markets and had lost their advantage. Since March 18th NWST1100 vs. W1Dow pair had rebounded and peaked six weeks ago. This year, crypto investments, represented by NWST1000 outperformed global equity by 51%. The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 price is above the average, while the W1Dow price is below the average.