Over the last week, NWST1100 rose 8.56%. Since 20th July, Ether and Bitcoin have led the crypto markets upward; Crypto has been a better investment than global equity.
*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: 143-day EMA flipped to support, markets could start a consolidation; however, the trend was upward. The NWST1100 chart shows that the assumption proved to be correct. The NWST1100 index had consolidated then started rising on Wednesday. Momentum indicators at the top show: RSI, PPO histogram, PPO lines, and the Breadth indicators at the bottom of the chart have moved upward. The PF chart on the left shows that the index made a halfway to the target.
The chart on the right shows breadth indicators: All A50R lines were overbought. We can see sharp and fast (3 weeks) move from oversold to overbought conditions.
* 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 73 (bullish and overbought); PPO histogram bars, PPO lines, and RSI, and the Breadth indicators, at the bottom of the chart, may continue upward direction. My opinion is based on this constellation: the test of resistance, represented by pivot R2, is more likely (+10%); the test may be followed by a pullback to 25-days EMA.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 8.56% during the last week. However, the table and the chart below show that all groups of coins and tokens, represented by 2100NEWS indexes, rose. Ether and Bitcoin have led the markets higher since 20th July.
Crypto (Digital Assets) compared with global equity
The chart compares the performance of the average Digital Asset (Coins, Tokens) represented by our NWST1100 index with the average global share represented by the Dow Jones global W1Dow index. Their quotient hit a record high three months ago; however, it plunged by 41%, which means that shares were a better investment for four months, but this changed three weeks ago. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 123.7% this year, while over the last 12 months, NWST1100 was 283% 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 45.4% 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 45.4% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.