The NWST1100 index has fallen 3.79% over the previous week and the second time tested support (143-Day Ema – red curve). Bitcoin has been the best-performing in the last thirty days (-1.63%).
*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 move to resistance R1 was likely; consolidation around pivot P was also possible.” The NWST1100 chart shows that the index second time tested support (143-Day Ema – red curve). Momentum indicators at the top show: the RSI, the PPO lines, the PPO histogram, and the Breadth indicators (at the bottom of the chart). They have fallen.
The chart on the right shows The percentage of digital assets trading above a 50-day moving average breadth indicator: All four A50R lines have been at the midpoint and signal that the bullish trend in crypto markets has been temporarily finished.
* 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, suggesting that the bearish momentum may weaken because of upslope McClellan Oscillator (bars above zero cause the Summation Index to rise). If we look ahead, the Momentum indicators give us the following signals in the coming days: RSI is 39; RSI, PPO histogram, and PPO lines may change direction if support (143-Day Ema – red curve) holds. Breadth indicators at the bottom of the first charts (NWST1100) may start flattening. The P&F chart on the left shows Bullish Price Objective (Tentative) at 4450 points (+62%). Based on this setup, if support (143-Day Ema – red curve) holds, a rebound to Keltner upper band is likely.
Performance of different groups of Digital Assets (Coins and Tokens)
The table shows that the total (NWST1100) index has fallen by 3.79% 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). Bitcoin has been the best-performing during the previous thirty days (-1.63%).
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 16 months ago. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 44.4% over the last 12 months, while this year, NWST1100 has been 29.3% higher. The blue curve is the average index price during the previous twelve months. We can see that the NWST1100 spot price is 15% 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 15% loss today. However, if we bought one NWST1100 daily in the previous six months, purchases are a bargain and profitable.
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.