Over the last week, NWST1100 soared 15.37%; the index resolved to the upside, and the price surged to a new all-time high (6458 points). However, the bulls could not sustain the higher level.
*Below, we present a standardized weekly report and next week’s outlook. We gauge the crypto market’s breadth and direction of 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 upward was more likely, the market was ready for the next (third) break-out attempt and, if successful, could reach resistance R2 (+15%). The NWST1100 PF chart on the left shows that the assumption proved to be correct. The range-bound action in the NWST1100 index resolved to the upside, and the price surged to a new all-time high (6458 points). Momentum indicators at the top show: PPO histogram and PPO lines have flattened out, as the Breadth indicators at the bottom of the chart. RSI has changed direction.
The chart on the right shows: All four A50R lines were overbought, but NWST1100’s A50R line changed direction. However, the bulls could not sustain the higher level; this has attracted profit-booking from short-term traders.
* 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
If we look ahead, the Momentum indicators give us the following signals: the RSI is 68.5 (bullish); PPO histogram bars and PPO lines, and RSI may continue direction in the coming days. The Breadth indicators, at the bottom of the chart, may flatten. My opinion is based on this constellation: a sideways trend and a consolidation are more likely, index price may test resistance R1 (+5%) or/and 10-Days EMA (5 percent fall).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 15.37% during the last week. However, the table and the chart below show that bears aggressively defended the $60,000 as resistance to Bitcoin, so Bitcoin’s gain was legging during the last month. Ether, Coins, and Tokens have reported gains between 35% and 45%.
Crypto (Digital Assets) compared with global equity
The superiority of crypto investments as a new investment class was continued. 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 record high was hit two weeks ago. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 160.8%, while during the previous 12 months, NWST1100 was 570% 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 230.8% 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 230.8% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.