2100NEWS WEEKLY CRYPTO REPORT Mar-29

298-2987595_stock-market



The index for NWST1100 has soared 10.89% over the last week; the NWSET100 index (Ethereum-based tokens) has shown the most favorable performance within the previous 30 days, with a gain of over 45.7%.

*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 complex to read initially, but the graph shows essential price information, crucial decisive price levels, momentum, trading volumes, and crypto market breadth. Monitoring Market Sentiment and Breadth is necessary to detect early signs of trend reversals or continued strength.

We have conducted a detailed examination of the NWST1100 index chart, which serves as a significant benchmark index and reveals a multitude of noteworthy insights:

  1. The NWST1100: The index has continued the rally and surpassed pivot P. This upward trend suggests that there are driving forces pushing the market higher.
  2. Market Sentiment: The Price Oscillator (PPO) lines were ceasing to fall, and the histogram’s ascent reflected increasing momentum. However, the Relative Strength Index (RSI) remaining flat in neutral territory presents a nuanced market picture. It suggests that while there is optimism, there’s also caution, with a balance between buyers and sellers that indicates uncertainty about future market direction.
  3. Crypto Market Breadth indicators at the bottom of the chart show the Advance-Decline Line (ADVL) and McClellan Summation Index. Falling during a rally signaled that the upward movement was not widely supported across the market. This suggests a concentration of gains in a few large-cap or significant cryptocurrencies rather than a uniform rally across the board. Such a scenario often raises concerns about the rally’s sustainability and the broader market’s health.

Based on these indicators, the observed market dynamics underscore a complex environment where cautionary signals from market breadth indicators accompany bullish trends. This situation poses challenges for investors. The initial bullish momentum, possibly spurred by window-dressing activities as investors realign their portfolios for quarter-end reporting, may not be as robust as it appears on the surface. In conclusion, while the market shows bullish signs, the underlying market breadth indicators suggest caution. The rally, while positive, may not be sustainable without broader participation.

According to the chart on the right, all four A50R lines were falling to the edge of overbought territory. This breadth indicator measures the percentage of digital assets trading above a 50-day moving average. 

* 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

This report analyzes the cryptocurrency market’s short-term outlook and aims to provide insights into its potential direction. Although predicting the market’s behavior is challenging, discernible patterns in market waves offer some predictability. By examining momentum indicators, we can identify several signals that shed light on the market’s possible direction in the short term.

  1. There is a possibility of a direction change in the PPO histogram. If the histogram moves lower, it might suggest bearish momentum.
  2. The RSI (Relative Strength Index), with an RSI reading of 58, points to a balanced market, suggesting that the forces of buying and selling are equally matched.
  3. The Breadth indicators, particularly visible at the bottom of the first chart (NWST1100), are on a downward trajectory. A decline in Breadth indicators, primarily the McClellan Summation Index, signals shrinking market participation. Such a contraction in market breadth is often interpreted as a bearish signal.

In conclusion, the short-term forecast for the cryptocurrency market advises caution. The presence of modest momentum coupled with restricted market engagement could lead to increased profit-taking and elevated selling pressure. As the first quarter closes and the second begins, strategic portfolio adjustments for quarter-end reporting might trigger further sell-offs, potentially culminating in a broader market retraction. Concurrently, it is crucial to remember that the Bitcoin halving is less than three weeks away, and the market may quickly experience a short squeeze. The NWST1100 index will likely test the Support S1 level, followed by a rapid recovery.

 

 

 

 

 

 

 

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

Investors and traders often rely on historical performance data to make informed decisions about their cryptocurrency holdings. After analyzing the data in the table, it can be seen that the overall index has soared 10.83% over the last week. The chart below highlights the performance of various cryptocurrencies, such as Bitcoin, Ether, and the 2100NEWS Indices, which represent the performance of Ethereum-based tokens (NWSET100), Large caps (NWSL100), and Coins (NWSCo100). The NWSET100 index, which represents Ethereum-based tokens, has outperformed other segments with a remarkable gain of 45.76% over the last thirty days. This could imply that the market is particularly optimistic about the developments and prospects within the Ethereum ecosystem. Interestingly, all the spotlight is on Bitcoin, maybe Ether.

While the broader market is experiencing a rally, different segments and individual cryptocurrencies exhibit varied performance dynamics. NWSCo100 and NWSL100 were leading; NWSET100 was weakening, possibly due to profit-taking, sector rotation, or a shift in investor focus toward other assets. In contrast, Ether and NWSBE were lagging. Bitcoin and NWWS30 were improving. Investors and traders might use this information to adjust their portfolios, possibly shifting focus toward assets with stronger relative momentum while being cautious about those in the Weakening quadrant.

*RRG® charts show the relative strength and momentum of groups of digital assets. Those with strong relative strength and momentum appear in the green Leading quadrant. As relative momentum fades, they typically move into the yellow Weakening quadrant. If relative strength then fades, they move into the red Lagging quadrant. Finally, when momentum picks up again, they shift into the blue Improving quadrant.

 

Crypto (Digital Assets) compared with global equity

This report offers a comprehensive analysis comparing the performance of digital assets, as signified by the NWST1100 index, to shares on global capital markets, as represented by the Dow Jones Global W1Dow index. The comparison spans various timeframes, offering insights into historical and recent performances and potential future trends.

Let’s break down the key observations and implications:

  • Historical Performance Comparison:
    • 29 Months Ago: Digital assets, represented by the NWST1100 index, were outperforming shares on capital markets, represented by the W1Dow index, with a record high quotient between the two indexes. At this juncture, digital assets displayed a notably superior performance trajectory compared to shares on global capital markets.
    • 12 Months Ago: Fast-forward to a year ago, and digital assets had a clear edge, outperforming shares by 86.9%. This performance data accentuates the heightened returns digital assets offered over shares in the specified duration.
  • Mean Reversion Opportunity:
    • The average quotient price over the past 143 working days is plotted as a blue dashed curve (7.82). Currently, the spot price is 11.14 and sits higher than its long-run mean, hovering around 7.05.
    • The mean reversion theory suggests that asset prices tend to revert to their historical average returns over time. The current average quotient price, modestly above the long-run mean, could imply that digital assets are currently highly valued compared to historical trends.
  • Returns Comparison:
    • The chart also presents the returns achieved with the stock generated by buying one point of the respective index daily over the past twelve months.
    • The NWST1100 Crypto Index enjoyed a 122.22% appreciation relative to last year’s period. With daily index investments, an investor’s stock would have seen an 89.0% uplift compared to the index’s current price.
    • Contrasting with the crypto index, the DJW, representing global capital market shares, grew by 21.73% over the past 12 months. However, a strategy involving daily purchases would have resulted in a gain of 13.3%.
    • Expectations are rife as we stand the confirmed bullish trend between digital assets and global capital market shares. Digital assets purchased over the preceding year at an average price of 3445 points seem poised to offer magnified returns compared to shares as we traverse this bullish phase.

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

 


About us

We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


CONTACT US

CALL US ANYTIME



Latest posts



Newsletter


    • ethereumEthereum (ETH) $ 3,067.72 2.62%
    • litecoinLitecoin (LTC) $ 77.18 1.96%