Over the last week, NWST1100 fell 5.37%. The index suffered massive declines. It tested the support represented by pivot P.
*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: The price inside the ascending channel might turn down like on three previous occasions. Bears might pull the price to pivot P (15 percent fall). The NWST1100 chart shows that the assumption proved to be correct as many times before. In retrospect, the NWST1100 index suffered massive declines. It tested the support represented by pivot P. Momentum indicators at the top show: RSI, PPO histogram, PPO lines, and the Breadth indicators at the bottom of the chart have continued falling.
On the right, the chart of digital assets trading above the 50-day moving average shows that two A50R lines were close to the midpoint (Coins, Largecaps), and the A50R lines of NWSET100 and NWST1100 became oversold. With an overall uptrend in progress, oversold conditions were used as buying opportunities, but these oversold readings could last long (like September and October). It is often prudent to wait for an upturn from oversold levels.
* 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 44; PPO histogram bars, PPO lines, and RSI may change direction to upward in the coming days, and the Breadth indicators, at the bottom of the chart, may flatten out. My opinion is based on this constellation: a move upward is more likely, index price may rebound to the trend line. Breadth indicators suggest that markets could resume their downtrend to stronger support (red curve 143-day EMA) in the coming weeks.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index dropped 5.57% during the last week. However, the table and the chart below show that indexes fell in the last week; Ether led the markets on the way down. Over the last month, Largecaps and Coins, represented by the NWSCo100 index, were the best performing groups; Bitcoin reported losses.
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 221.3%, while during the previous 12 months, NWST1100 was 578% 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 198.3% 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 198.3% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.