Over the last week, NWST1100 fell by 0.47%. Ripple has led the Large-caps (NWSL100) and Coins (NWSCo100) index down. Intermarket relationships show Bitcoin itself practically runs the actual Christmas rally.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100), representing the top 1100 Digital Assets. The information-laden chart is difficult to read initially, 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 sideways trend was more likely; a 10% rise or fall was equally likely. The NWST1100 chart shows that the assumption proved to be correct; the index price had fallen, tested the support represented by 10-days EMA, and immediately rebounded. The massive Bitcoin rally led the NWST1100 way up. However, the recent lawsuit laid out by the United States Securities and Exchange Commission against Ripple has led the Large-caps (NWSL100) and Coins (NWSCo100) index down. Momentum indicators at the top show: PPO lines, RSI, and PPO histogram changed direction.
The chart on the right shows: all four A50R lines were in balance. This is typical of a sideways trend.
* The percentage of digital assets trading above a specific moving average is a breadth indicator that measures internal strength or weakness in the underlying index. The chart on the right side compares the percentage of DA trading above 50 days EMA for:
- 100 Large-caps members of NWSL100 (top box)
- 1100 members of NWST1100
- 100 Ethereum Tokens members of NWSET100
- 100 Coins members of NWSCo100 (bottom box)
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 79 (overbought and bullish); The Breadth indicators, at the bottom of the chart, could flatten; PPO lines may continue direction in the coming days. My opinion is based on this constellation: a sideways trend is more likely; however, the Christmas rally may continue, and after Bitcoin and Ether, some altcoins will move higher.
The chart below compares Bitcoin, Ether, Tokens, Coins, and Large-caps. The chart shows that Bitcoin itself practically runs the actual Christmas rally; due to its dominance, it gives the impression that market movements are greater than they actually are. In the last week, Ether has started pulling the “Santa’s sleigh.”
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index decreased by 0.47%. Ripple has led the Large-caps (NWSL100) and Coins (NWSCo100) index down.
Crypto (Digital Assets) compared with global equity
We have already shown the superiority of crypto investments as a new investment class. The chart 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. Last week a new record high was hit. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 185%. 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 NWST1100 spot price is 104.1% 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 104.1% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.