The NWST1100 index has plunged by 22.79% over the previous week. FTX’s insolvency issues caused bloodbaths and shockwaves throughout the Crypto World. Ether has been the best-performing during the last thirty days.
*Below, we present a standardized weekly report and next week’s outlook, prepared based on the Theory Swingtum 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 last week’s assumption. “The continuation of the rally with higher volatility and a move to Pivot R1 was likely.” The NWST1100 chart shows the index plunged to multiyear lows because the FTX exchange was insolvent and that caused shockwaves throughout the Crypto World. Behind the bloodbath, Binance explained that FTX’s solvency issues were beyond its control or ability to help. Momentum indicators at the top show that PPO lines, RSI, the PPO histogram, and the Breadth indicators (at the bottom of the chart) changed direction and started falling.
The chart on the right shows The percentage of digital assets trading above a 50-day moving average breadth indicator: All four A50R lines plunged and are oversold.
* 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 that has sharply plummeted over the last week. If we look ahead, the Momentum indicators give us the following signals in the coming days: RSI is 36; RSI, PPO histogram, and PPO lines may change direction; the Breadth indicators at the bottom of the first (NWST1100) may flatten. Based on this setup, consolidation and a rebound to Pivot S1 are likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has plunged 22.79% over the last week. In the chart below, we can see Bitcoin, Ether, and the 2100NEWS Indices, which measure the performance of Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). Ether has been the best-performing during the previous thirty days (-2.27%).
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 a year ago; however, it is 73.3% lower now. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 72.3% over the last 12 months, while this year, NWST1100 was 63.1% lower. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 50.8% 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 50.8% loss today. Global equity (W1Dow) spot price is 6.6% 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.