Over the last week, NWST1100 soared 18.32%. The index made a quick and strong rebound. Then it has hovered near the trendline.
*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 rebound inside a trading range was more likely, index price might move near the trending line (20 percent rise). The NWST1100 chart shows that the assumption proved to be correct as many times before. The NWST1100 index made a quick and strong rebound. Then, it has hovered near the trendline. Momentum indicators at the top show: RSI, PPO histogram, and PPO lines changed direction, the Breadth indicators at the bottom of the chart have flattened out.
However, the bulls made huge buys on the dip. The chart on the right shows All four A50R lines changed direction, and the A50R lines of NWSET100 and NWSL100 became overbought again – a bullish sign.
* 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 63; PPO histogram bars, PPO lines, RSI, and the Breadth indicators, at the bottom of the chart, may continue direction in the coming days. My opinion is based on this constellation: a move upward is more likely, index price may test all-time high and then continue to resistance R1 (1o percent rise). A pullback from the top will be sharp and quick (more than 10 percent).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index soared 18.32% during the last week. However, the table and the chart below show that indexes rose in the last week; Ether led the markets. Midcaps and Coins, represented by the NWSCo100 index, were the best performing groups; Bitcoin’s gain was legging during the last month.
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 195.2%, while during the previous 12 months, NWST1100 was 534% 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 194.8% 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 194.8% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.