Over the last week, NWST1100 rose 1.7%. After testing the support represented by the 143-day EMA, the index made a massive move up, 30% from the bottom to the top.
*Below, we present a standardized weekly report and next week’s outlook. We gauge the crypto market’s breadth and direction by showing charts 2100NEWS Digital Assets Total Index (NWST1100), which measures 1100 (by market capitalization) major crypto assets’ performance. 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 support represented by the red curve (143-day EMA) might hold so that the markets could consolidate with many ups and downs in a wide range (more than 30%). The NWST1100 chart shows that the assumption proved to be correct as many times before. In retrospect, the NWST1100 index had tested the support represented by 143-day EMA (red curve on the chart above), then made a massive move up, 30% from the bottom to the top. Momentum indicators at the top show: RSI, PPO histogram changed direction; PPO lines and the Breadth indicators at the bottom of the chart have continued falling.
The chart on the right shows breadth indicators: All A50R lines were oversold. Investors use oversold conditions 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 37 (bearish); PPO histogram bars may continue rising, 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 (+12%), index price may test strong resistances (10-day EMA, 25-day EMA, Pivot P). However, breadth indicators suggest that markets could again resume their downtrend to stronger support (red curve 143-day EMA) in the coming weeks (-20%).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 1.7% during the last week. However, the table and the chart below show that some indexes fell in the last week; Ethereum Tokens, represented by the NWSET100 index, led the markets upward. Bitcoin still reported losses.
Crypto (Digital Assets) compared with global equity
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 three weeks ago; however, it plunged by 41%. The Percentage Change Marks on the chart show that this year NWST1100 outperformed W1Dow by 113.9%, while over the last 12 months, NWST1100 was 366% higher. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price and W1Dow price are above average, but the NWST1100 spot price is 83.5% 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 83.5% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom of the chart is W1Dow.