2100NEWS WEEKLY CRYPTO REPORT Mar-31

The NWST1100 index has surged by 4.07% over the previous week. Bitcoin has been the best-performing in the last thirty days (+20.79%) and shone brightly in very lucrative crypto markets in the first quarter.

*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 R2 was likely.” The NWST1100 chart shows a move upward, topped below the hurdle (resistance R2), then the index lingered above resistance R1. Momentum indicators at the top show: PPO lines and histogram, and RSI; they have flattened out, as well as the Crypto Market Breadth indicators (at the bottom of the chart). We briefly evaluate very lucrative crypto markets in the first quarter; Bitcoin has led the crypto markets and shone brightly (+71%), especially after turmoil in global legacy banking in March, while Altcoins lagged.

The chart on the right shows The percentage of digital assets trading above a 50-day moving average breadth indicator: All four A50R lines were near the midpoint – market indecision condition.

* 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; the area plots the McClellan Summation Index, a long-term measure of market breadth, suggesting that the bullish momentum may strengthen 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 58; RSI, PPO histogram, PPO lines, and Breadth indicators at the bottom of the first charts (NWST1100) may continue direction. Based on this setup, A move to resistance R2 is likely. However, a pullback to the 25-Day EMA is possible.

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

The table shows that the total (NWST1100) index has surged 4.07% over the last week. The last column indicates very lucrative crypto markets in the first quarter of 2023; most of the return came from the Rally in January. 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 (+20.79%).

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 17 months ago. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 47.4% over the last 12 months, while this year, NWST1100 has been 48.6% higher. The blue curve is the average index price during the previous twelve months. The quotient shows that crypto investments are much more successful after rebounding and growing. That’s why buying (building your investment) was important when the price was low. Mean reversion, or reversion to the mean, is a theory used in finance that suggests that asset price and historical returns eventually will revert to the long-run mean (brown dashed line – 8.28).

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