Over the last week, NWST1100 surged by 5.45%, the bulls controlled the index, the index price has stayed above the upper Keltner line. Crypto markets experienced a new index rotation from Bitcoin and Ether to tokens caused while the NWSET index soared.
*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: If the bulls could propel the price above 1090 points, the next target to watch out for would be 10% higher. The NWST1100 chart shows that the assumption was true, the bulls controlled the index, the index price has stayed above the upper Keltner line. At the top we see momentum indicators: PPO lines are sloping up while RSI has risen deep in the overbought zone.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 94 (extremely overbought which increases the possibility of a minor correction or a pullback); PPO histogram bars may cross zero lines in the coming days. At the bottom of the chart, we see the Breadth indicators that may continue rising. This constellation is the basis for my opinion: a more likely course for the next week is a move above the resistance R1 (4% higher), correction to 10-days EMA (-7%) is either possible.
Performance of different groups of Digital Assets (Coins and Tokens)
The crypto markets continued moving up over the last week, the table shows that the total (NWST1100) index surged by 5.45%. Ethereum Tokens index NWSET100 was the strongest.
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. Over the last four months, Ethereum based tokens have decoupled. Their prices did not follow Bitcoin and Ether represented by the NWSBE. The chart below shows crypto index rotation from tokens to Bitcoin and Ether and back to tokens. Tokens built on Ethereum represented by 2100NEWS DA Ethereum Based Index (NWSET100) had experienced a massive rally during the first three weeks (+27.21%), then one week Ether led the way up, so NWSBE soared (25%) and caught NWSET100. The third rotation was during August, the NWSET index has soared again, it has beaten NWSET.
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, crypto investment represented by NWST1000 beat global equity by 87% while over the last 12 months NWST1100 was was 10% 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 44% higher than twelve months index average price.