The NWST1100 index rose 7.3% over the last week. Bitcoin and Ether have led the crypto markets up (NWSBE +11.04%). Bitcoin has soared 49% during the previous three weeks.
*Below, we present a standardized weekly report and next week’s outlook, prepared based on Swingtum Theory of intelligent finance. 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: markets could start the consolidation; the index could get stuck in a narrow range between resistance near 8000 points (+6%) and 10-Days EMA. The NWST1100 chart shows that the assumption proved correct; the index had moved to 8000 points – September’s high. The Momentum indicators at the top show: PPO lines, RSI; they have risen, and the PPO histogram, the Breadth indicator at the bottom of the chart, has flattened.
The chart on the right shows The percentage of digital assets trading above a 50-days moving average breadth indicator: All A50R lines moved just above the midpoint. The graph tells us that the sideways trend has been in place.
* 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 72 (bullish and overbought); PPO lines may continue rising, RSI and PPO histogram bars may change direction; the Breadth indicators, at the bottom of the chart, may continue rising in the coming days. The histogram below is the McClellan Oscillator. That’s a short-term measure of market breadth. The fluctuations are at least partially predictable due to their quasi-periodic nature. My opinion is based on this constellation: Upward move in the Upper Channel is likely, the index price may test the resistance R2 (+8%), but by the end of the week, a pullback to 10-Days EMA or even 25-Days Ema is possible.
*The Swingtum Theory of intelligent finance believes that multilevel dynamical swings, physical cycles, and momentum potential and moves exist in market prices. In the financial markets, swing refers to nonrandom fluctuations of prices that are at least partially predictable due to their quasi-periodic nature. A swing is bound by a range or channel where the boundaries can be projected from previous prices, but momentum is often half-open with a base but without a precise target level because it may overshoot. The multilevel swings and momentums in a price time series have a nested structure in which smaller swings form a part of a more significant swing.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index rose 7.30% over the last week. Bitcoin and Ether have led the crypto markets up during the previous week (NWSBE +11.04%). The chart shows that Bitcoin (+49%) has led the crypto markets upward during the last three weeks.
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 five months ago; however, it dropped by 16%, which means that shares were a better investment for a while, but this changed three months ago. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 207.9% this year, while over the last 12 months, NWST1100 was 498% 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 62.2% 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 62.2% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.