The NWST1100 index fell 5.46% over the last week. Mid caps, Small caps, and Ethereum Tokens represented by the NWSET100 index (+10.23%) have been the best performers in the last month.
*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) significant crypto assets’ performance. The information-laden chart is difficult to read initially, but the graph 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: “An upward move to Pivot R1 (+10%) is likely.”. The NWST1100 chart shows the ascending channel; the index had moved upward but did not reach Pivot R1. On Friday, a new coronavirus variant rattled crypto markets after an overnight sell-off was sparked. However, current prices arguably offer a golden entry opportunity. The Momentum indicators at the top show: PPO lines, RSI, and the PPO histogram. They and the Breadth indicators at the bottom of the chart have fallen.
The chart on the right shows The percentage of digital assets trading above a 50-days moving average breadth indicator: All four A50R lines are in the middle; however, three of them are on the verge, near oversold territory. The graph tells us that the crypto markets have still experienced a sideways trend.
* 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
The waves are at least partially predictable due to their quasi-periodic nature. The rhythm of the waves indicates the rising part of the wave. If we look ahead, the Momentum indicators give us the following signals: the RSI is 39; PPO lines, PPO histogram, and the Breadth indicators, at the bottom of the chart, may change direction to upward in the coming days. My opinion is based on this setup: an upward move to R1 and then to the Upper Channel is likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index fell 5.46% over the last week. The chart shows that Ethereum Tokens represented by the NWSET100 index (+10.23%) have been the best performers in the last month.
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 weeks ago; however, it is 16.5% lower now. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 206.4% this year, while over the last 12 months, NWST1100 was 292% higher. Over the last four weeks of 2020, the quotient rose 28%. 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 38.2% 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 38.2% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.