2100NEWS WEEKLY CRYPTO REPORT Jan-23

The NWST1100 index has plummeted 20.93% over the last week. The pivot S2 didn’t hold the decline. NWST1100 spot price is 20.3% lower than twelve months index average price. It may be a good time to invest when investment is cheaper.

*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: “a continuation of the downtrend was likely; the target was double bottom at 5800 points or even pivot s2; then a quick and sharp rebound (+15%) to pivot S1 was possible.” The NWST1100 chart shows that pivot S2 didn’t hold the decline because Bears were stronger. Momentum indicators at the top show: PPO lines, RSI, and the PPO histogram. These indicators and the Breadth indicators at the bottom of the chart have continued a downtrend.

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 broad crypto markets have continued 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:

1. 100 Large-caps members of NWSL100 (top box)
2. 1100 members of NWST1100
3. 100 Ethereum Tokens members of NWSET100
4. 100 Coins members of NWSCo100 (bottom box)

Outlook for this week

The waves are at least partially predictable due to their quasi-periodic nature, and the rhythm of the waves indicates the start of the rising part of the wave is possible. If we look ahead, the Momentum indicators give us the following signals: the RSI is 20 and oversold; RSI, PPO lines, and PPO histogram may change direction in the coming days, as the Breadth indicators at the bottom of the chart. My opinion is based on this setup: a quick and sharp rebound (+20%) to resistance represented by 10-Days EMA is likely.

Performance of different groups of Digital Assets (Coins and Tokens)

The table shows that the total (NWST1100) index has plummeted by 20.93% over the last week. On the chart below, we can see Bitcoin, Ether, and the 2100NEWS DA Indexes, which measure the performance of Ethereum based tokens (NWSET100), Large caps (NWSL100),  Coins (NWSCo100). Ether (-46.77%) has been the worst-performing 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 eleven weeks ago; however, it is 44.8% lower now. The Percentage Change Marks on the chart show that NWST1100 outperformed W1Dow by 62% over the last 12 months, while this year, NWST1100 was 24.3% lower. The blue curve is the average index price during the previous twelve months. We can see that the W1Dow spot price is to the index’s average price; the NWST1100 spot price is 20.3% lower than twelve months index average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is recording a 20% loss today.  It may be a good time to invest when investment is cheaper.

*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.