The NWST1100 index has rebounded 4.89% over the previous week. Ether seems to have performed the best over the last thirty days, with an increase of +2.04%.
*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.
Based on the previous report, it was expected that there would be a move to pivot P, which seems likely to have happened. Looking at the NWST1100, we can see that the index initially dropped to around 2844 points but has since rebounded. Momentum indicators at the top show, such as PPO lines and histogram, as well as RSI, changed direction, while the Crypto Market Breadth indicators (at the bottom of the chart) have continued 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 were oversold, which signals a bearish crypto market.
* 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
It appears that the waves have a somewhat predictable nature. Based on the quasi-periodic nature of the waves, their predictability can be partially anticipated. According to the McClellan Summation Index (the area plots), which measures market breadth over the long term, the bullish momentum may be challenged due to the downslope McClellan Oscillator (bars below zero causing the Summation Index to fall). Looking ahead, the Momentum indicators give us the following signals for the near future: RSI is at 52; RSI, PPO histogram, and PPO lines may change direction, while Breadth indicators at the bottom of the first charts (NWST1100) may continue direction. Based on this setup, a move to support S1 is likely; however, a rebound to pivot P is possible.
Performance of different groups of Digital Assets (Coins and Tokens)
Based on the data in the table, the overall index in NWST1100 has rebounded 4.89% over the past week. Additionally, the chart below highlights the performance of several cryptocurrencies, including Bitcoin, Ether, and the 2100NEWS Indices, which measure the performance of Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). Looking back over the last thirty days, Ether seems to have performed the best, with a rise of +2.04%.
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 18 months ago. The Percentage Change Marks on the chart show that NWST1100 lagged behind W1Dow by 37.1% over the last 12 months, while this year, NWST1100 has been 47.3% 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. Therefore, buying (building your investment) is essential when the price is low. Additionally, the theory of Mean reversion, or reversion to the mean, is used in finance and suggests that asset price and historical returns will eventually revert to the long-run mean (brown dashed line – 8.36).
*The box in the middle of the chart shows the original NWST1100 price; at the bottom is W1Dow.