2100NEWS WEEKLY CRYPTO REPORT
Written by Branko on August 11, 2019
Over the past week, the Total index rose to its peak in the middle of the week, it was trading at 1025 points four times last week but has lost traction at or above that price point, NWST1100 surged by 7.8%.
*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.
In the previous report, it was said that our assumption has been: the rally could continue to the target around 1050 points. On the NWST1100 chart, we can see, that index rose to its peak in the middle of the week, it was trading at 1025 points four times last week but has lost traction at or above that price point.
Looking ahead to the next week, the indicators give us the following signals: we can see that RSI is 52 and sloping down, the PPO wave is flattening. PPO histogram could continue sloping down in the next few days. Breadth indicator McClellan summation index and ADVP a breadth statistic based on Net Advancing Volume are flattening out. This set up means that at this point, there are two likelihoods: a continuing downward trend or if bulls defend this zone, turning around from the support levels ( 25-day EMA) and rising to the green Target. Nonetheless, some bulls are saying that the current market conditions indicate only a temporary setback for its inevitable surge beyond the previous high.
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that Total (NWST1100) index surged by 7.8% 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. Looking at the PF chart below we can see, that Large-caps (AltCoins) are in confirmed bearish trend. The chart on the right shows us that over the last four months Large-caps prices did not follow Bitcoin and Ether represented by NWSBE index, quite the opposite we were observing decoupling, Large-caps reported big losses vs NWSBE.
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 105% but over the past two months, we were observing a sideways trend and over the past two weeks gains inside the sideways trend.