In the past week, we were observing consolidation (falling flag pattern), total (NWST1100) index increased by 1.91%. Initial resistance (bold red dotted line) was at 900 or the 38.2% retrace of the overall swing. We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represent 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.
On the NWST1100 chart we can see, that after the index’s 25% price slump from 2019-high we were observing consolidation (falling flag pattern). Initial resistance (bold red dotted line) was at 900 or the 38.2% retrace of the overall swing. Resistance often becomes support once it is taken out. What we look for is accumulation, and the longer the price remains above previous resistance now current support, the more participants will feel safe to buy-in.
Looking ahead to the next week, the indicators give us the following signals: we can see that RSI is near 30 and could be bearish in the next few days, the PPO wave could change direction, PPO histogram could start a positive wave in the next few days. Breadth indicator McClellan summation index and ADVP a breadth statistic based on Net Advancing Volume are declining. This setup points to a ranging market and means that is likely expected a wave up inside a sideways trend. This can play out as a double bottom and a signal to go long. It is still early, but so far it is attempting to hold 900. It is possible, and somewhat probable, that we push lower to 840. This is a reasonable area that would definitely shake out weak hands.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that Total (NWST1100) index increased by 1.91% 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 average global equity represented by Dow Jones global index W1Dow. This year average crypto vs. W1Dow soared over 100%.