2100NEWS WEEKLY CRYPTO REPORT October-4

Over the last week, NWST1100 dropped by 3.75%, the index price tested the resistance represented by 25-days EMA then the price moved down. DeFi placed pressure on tokens built on Ethereum because the hype around the Decentralized Finance (DeFi) turned into a sharp fall in September.

*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: a move upward was more likely, the market could move to the upper Keltner band.  The NWST1100 chart shows that the assumption was almost true, the index moved up during the first four days of the week, then the index price tested the resistance represented by 25-days EMA. Buyers were not strong enough however the price moved down. At the top we see momentum indicators: PPO lines are sloping up but PPO histogram and RSI are sloping down, Breadth indicators at the bottom have continued a downward trend.

Outlook for this week

Looking ahead, the Momentum indicators give us the following signals: the RSI is 42; PPO histogram bars may continue direction 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 sideways trend is more likely, the index could test for a third time if the support represented by 143-days EMA holds. In this case, the index will turn around sharply as it did twice in September.

Performance of different groups of Digital Assets (Coins and Tokens)

The crypto markets fell over the last week, the table shows that the total (NWST1100) index dropped by 3.75%.  DeFi placed additional pressure on tokens built on Ethereum because the hype around the Decentralized Finance (DeFi) turned into a sharp fall in September.

Digital Assets decoupling

2100NEWS DA indexes enable us to measure decoupling. Over the last three months,  Ethereum based tokens have decoupled. Much of the sentiment revolved around the fast growth and fall of the DeFi space. Hence, over September when DeFi tokens crashed, they placed selling pressure on tokens built on Ethereum. For instance, the 2100NEWS DA Ethereum Based Index (NWSET100)  experienced a massive fall during the last month (-29.2%).

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 that crypto investments are superior over various timespans. This year NWST1100 outperformed W1Dow by 62% while over the last 12 months, NWST1100 was 25% higher. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 spot price is 20.9% 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 20.9% gains today.

*The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow.