Over the last week, NWST1100 soared 39.24%. The parabolic rise was unsustainable. The sharp rejections from each new all-time high also signal that there was aggressively taking a profit.
*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 20% fall from the level was equally likely. Crypto markets would be extremely volatile, full of abrupt turnarounds, with up to 20 percent falls and further rebounds. The NWST1100 chart shows that the assumption proved to be correct; the index price hit a new all-time high: after reaching a peak of 3,332 on January 8, prices quickly retreated. The parabolic rise was unsustainable. There was a battle between expected taking profit and new buyers. The sharp rejections from each new all-time high also signal that there was aggressively taking a profit. 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 overbought because the broader crypto market has intensified.
* 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 60; The Breadth indicators, at the bottom of the chart topped, could change direction; PPO lines may continue direction down in the coming days. My opinion is based on this constellation: a downward trend and consolidation are more likely. The dizzying rise and precipitous decline — nearly 20% in 24 hours.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 39.24%. Ether has led the markets up.
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 38.5%, while over the last 12 months, NWST1100 was 300% higher. 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 205% 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 205% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.