Over the last week, NWST1100 soared 14.90% to a new all-time high (7870 points). However, the bulls could not sustain the higher level; this has attracted profit-booking.
*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: slow growth was more likely, depending on the rhythm of the waves, we could expect the index to reach resistance R2 (+3%) and test the support levels 10-Days EMA (5 percent fall) again. The NWST1100 chart shows that the assumption proved to be correct. The slow growth action in the NWST1100 index pushed it over R2, and the price surged to a new all-time high (7870 points). Then index has experienced a sharp pullback to 10-Days EMA. Momentum indicators at the top show: RSI, PPO histogram, and PPO lines changed direction, as well as the Breadth indicators at the bottom of the chart.
However, the bulls could not sustain the higher level; this has attracted profit-booking. The chart on the right shows All four A50R lines changed direction, and crypto markets could remain stuck in a range for a few days. Investors will be on the fence on whether they should buy the dips or close their positions in anticipation of further decline, like at the beginning of September 2020. The lack of buying on dips will suggest that the index has topped out in the short term.
* 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 52; PPO histogram bars, PPO lines, RSI, and the Breadth indicators, at the bottom of the chart, may continue direction in the coming days. Correction of this type usually takes three to five days. My opinion is based on this constellation: a downtrend and a consolidation are more likely, index price may test if support near 25-Days EMA (5 percent fall) hold; if not, the next support is pivot P (15 percent fall).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 14.90% during the last week. However, the table and the chart below show that Bitcoin’s gain was legging during the last month. Ether, Coins, and Tokens topped on 15th April.
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. Their quotient hit a record high last week. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 199.8%, while during the previous 12 months, NWST1100 was 682% 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 238.1% 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 238.1% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.