The NWST1100 index plunged 12.18% over the last week, and its price made a double bottom. Ether (-15.12%) has declined the least during the previous thirty days.
*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: “First, a double bottom, then a strong rebound from support represented by 143-days EMA was likely.” The NWST1100 chart shows the double bottom. However, current prices arguably offer a golden entry opportunity. Momentum indicators at the top show: PPO lines, RSI, and the PPO histogram. PPO lines 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 oversold. The graph tells us that the crypto markets have still experienced a trend down.
* 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 time is for the rising part of the wave. The support represented by 143-days EMA is usually robust. If we look ahead, the Momentum indicators give us the following signals: the RSI is 36; PPO lines, PPO histogram may change direction to upward in the coming days. At the bottom of the chart, the Breadth indicators may flatten out. My opinion is based on this setup: a rebound to the Upper Channel and pivot P is likely, resuming trend down is possible but less likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index plunged 12.18% over the last week. The chart shows that Ether (-15.12%) has declined the least during the previous thirty days.
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 weeks ago; however, it is 28.1% lower now. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 163.5% this year, while over the last 12 months, NWST1100 was 249% higher. Over the last three weeks of 2020, the quotient rose 32.8%. 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 15.8% 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 15.8% gains today.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.