The NWST1100 index started a rally in 2023 and has risen by 4.95% over the previous week. Ether has been the best-performing during the last thirty days. However, 2100NEWS Tradable Indices have been the best performers in 2023.
*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. “A rebound in the year’s first week was likely.” The NWST1100 chart shows a bullish PPO line upward centreline crossover, so the index has rallied. It was the bulls’ turn (rising indicators), and buyers had enough energy to push the market higher. Momentum indicators at the top show: RSI, the PPO lines, and the PPO histogram; they have risen. The Breadth indicators (at the bottom of the chart) started sloping upward.
The chart on the right shows The percentage of digital assets trading above a 50-day moving average breadth indicator: All four A50R lines are oversold, but they have risen.
* 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 risen over the last week. If we look ahead, the Momentum indicators give us the following signals in the coming days: RSI is 58; RSI, PPO histogram, PPO lines, and the Breadth indicators at the bottom of the first (NWST1100) chart may continue rising, considering rising McClellan Summation Index on the chart below. However, resistance at Pivot R2 is a substantial obstacle. Based on this setup, a rally to the resistance R2 in the pink range of the first (NWST1100) chart is likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has risen by 4.95% 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 (+2.90%). However, Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100) have been the best performers in 2023.
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 14 months ago. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 62% over the last 12 months. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 41.7% 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 41.7% loss today. However, if we bought one NWST1100 every day in the previous six months, purchases are a bargain and could soon be highly profitable. Global equity (W1Dow) spot price is 3.9% 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.