Over the last week, NWST1100 soared 18.24%, the index has made a breakout, while tokens built on Ethereum, represented by the NWSET100 index, soared even 41.02%.
*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 essential price information, crucial 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 up in the more significant sideways trend was more likely; bulls could propel the price to the previous all-time high (3330 points). The NWST1100 chart shows that the assumption proved to be correct; the index has made a breakout. Momentum indicators at the top show: RSI, PPO histogram, and PPO lines have continued rising.
The chart on the right shows: All four A50R lines were extremely overbought.
* 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 75 (bullish and overbought); The Breadth indicators, at the bottom of the chart and PPO lines, may continue direction up; PPO histogram bars may change direction (down) in the coming days. My opinion is based on this constellation: a move up is more likely, bulls can propel the price to resistance R2 (+5%). Crypto markets will be volatile, with up to 10 percent falls.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 18.24% over the last week, while tokens built on Ethereum soared even 41.02%.
Crypto Cycle and the Intermarket relationships
The chart below shows three stages in 2021.
Stage 1: The end of Bitcoin or Christmas rally (On the left side of the chart)
Stage 2: The tokens built on Ethereum led the markets (In the middle of the chart: NWSET100 (+77.24%) outperformed Ether, Coins, and Bitcoin)
Stage 3: Bitcoin rally (last few days – on the right side of the chart).
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. A new record high was hit last week. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 53.3%, while during the previous 12 months, NWST1100 was 240% higher. The blue curve is the average index price in the last twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 194,7% higher than twelve months index average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 197,7% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.