The NWST1100 index has fallen by 5.45% over the previous week; the index had touched and then rebounded off the support S1. Ether has been the best-performing in the last 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: “the downtrend might continue, and a move to support S1 was likely; then, a rebound was possible” The NWST1100 chart shows the index had touched support S1 and then rebounded off the S1. Volume-by-Price is an indicator that shows the amount of volume for a particular price range, which is based on closing prices. Volume-by-Price bars are horizontal and displayed on the left side of the chart to correspond with these price ranges. Two colors bar separate the up volume and down volume. At the current price level, long up-volume portions reflect more demand; the buyers purchased the dip. 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; RSI and the PPO histogram have changed direction.
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 (belove 30). In various measures of market breadth on the chart can be seen more clearly that the crypto markets were in a downtrend.
* 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 area plots the McClellan Summation Index, a long-term measure of market breadth. If we look ahead, the Momentum indicators give us the following signals in the coming days: RSI and PPO histogram may continue rising; PPO lines and the Breadth indicators at the bottom of the chart may change direction. My opinion is based on this setup: After double bottom, this level could open the doors for a possible rally to the 143-Day EMA (red curve). Less likely but possible is that support S1 will not hold (resumption of downtrend).
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has fallen by 5.45% 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 (+3.51%) has been the best-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 five months ago; however, it is 39% lower now. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 28.8% over the last 12 months, while this year, NWST1100 was 16% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 13.1% lower than twelve months index’s average price. That means: If we bought one NWST1100 every day over the last twelve months, our investment is recording a 13.1% loss today. Global equity (W1Dow) spot price is 4.7% lower than twelve months index’s average price.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.