Over the last week, NWST1100 plummeted by 8.17%, the index price tested the support represented by 25-days EMA which did not hold. The moving averages completed a bearish crossover. The index fell more than 20% from the top.
*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: the sideways trend was still more likely, the market could linger inside the Keltner channel. The NWST1100 chart shows that the assumption was false, the index trended sideways during the first four days of the week, then the index price tested the supports represented by 25-days EMA and S1 which did not hold. The moving averages completed a bearish crossover. The index fell more than 20% from the top. Corrections are healthy, some crypto investors used the recent dip to purchase. Buying against the prevailing short-term trend was not an easy task. However, it will be the right thing if the support represented by 143-days EMA holds. At the top we see momentum indicators: PPO lines and RSI are sloping down.
The chart below compares the percentage of DA trading above 50 days EMA for:
- 100 Large-caps members of NWSL100 (top box)
- 1100 members of NWST1100
- 100 Ethereum Tokens members of NWSET100
- 100 Coins members of NWSCo100 (bottom box)
over the last 10 months. All four A50R lines moved from the red overbought border to green oversold over the last week. *The percentage of digital assets trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 32; PPO histogram bars may continue sloping down in the coming days. At the bottom of the chart, we see the Breadth indicators that may continue falling. This constellation is the basis for my opinion: the move downward is more likely, the index could test again if the support represented by 143-days EMA holds. In this case, the index will turn around sharply.
Performance of different groups of Digital Assets (Coins and Tokens)
The crypto markets fell sharply over the last week, the table shows that the total (NWST1100) index plummeted by 8.17%. Ether led the way down.
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. The chart shows the superiority of crypto investments. This year NWST1100 outperformed W1Dow by 71% while over the last 12 months, NWST1100 was 10.5% higher. 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 spot price and W1Dow price are above average, but the NWST1000 spot price is 34.4% higher than twelve months index average price. This means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 34% gains today.