Over the past week, NWST1100 surged by 5.83%. The Total index rose to its peak and was backing off from overhead resistance along the upper trend line, it was trading at its 25-days EMA. Last five months crypto leadership was coming from Bitcoin, Large-caps (AltCoins) have been hit hard and have been one of the market’s weakest group.
*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: a more likely course would be a move to 25-days EMA. On the NWST1100 chart, we can see, that index rose to its peak and was backing off from overhead resistance along the upper trend line, it was trading at its 25-days EMA but it did not clear some upside resistance barriers. At the same time, its 14-day RSI lines (upper box) have risen to 50; and its daily PPO lines have turned more positive.
Looking ahead to the next week, chart patterns still show us Symmetrical triangle. The direction of the next major move can only be determined after a valid breakout in the next week. The indicators give us the following signals: we can see that RSI is 50, the brown PPO histogram bars could turn more positive in the next few days. As a consequence, the PPO lines are close to crossing above 0. That would be a sign of stronger upside momentum. Breadth indicator McClellan summation index and ADVP a breadth statistic based on Net Advancing Volume are flattening out. This set up is the basis, that for the next week is a more likely course a move to the upper trendline for the third time since the start of July. Sometimes the third time is a charm. And it looks like this time it is. This leaves open the possibility of a retest of R1 (960 points).
Performance of different groups of Digital Assets (Coins and Tokens)
Looking at the table, you can see that Total (NWST1100) index increased by 5.83% 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. Last five months crypto leadership was coming from Bitcoin. On the Bitcoin chart below we can see a similar setup as on the chart of NWST1100 (Symmetrical triangle, the PPO lines are close to crossing above 0). Large-caps (AltCoins) have been hit hard and have been one of the market’s weakest group. So their ability to find support could give us a clue as to overall market direction.
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 to near 75% but over the past 13 weeks, we were observing a consolidation. Last two months NWST1100 reported 29.8% loss vs. W1Dow.