Over the last week, NWST1100 fell by 0.64%, the index price moved up during the first four days of the week then it has been hovering near the upper Keltner Channels indicator’s line. Over the last two months, Bitcoin and the other markets have decoupled. Their prices did not follow Bitcoin because they were providing fuel for Bitcoins rally.
*We gauge the crypto market breadth and direction of the market by showing charts 2100NEWS Digital Assets Total Index (NWST1100) which represents the top 1100 Digital Assets. The information-laden chart is difficult to read at first glance but the chart shows key price information, important decisive price levels, momentum, trading volumes, and crypto market breadth.
The previous report showed, that our assumption for the last week had been: a move upward was more likely, the bullish momentum might lead the market to test the previous high (1.237 points). The NWST1100 chart shows that the assumption proved to be incorrect, the index moved up during the first four days of the week, then the index price has been hovering near the upper Keltner Channels indicator’s line. That was a sign that buyers were not strong enough. At the top we see momentum indicators: PPO lines and PPO histogram are sloping down, Breadth indicators at the bottom have changed direction.
Outlook for this week
Looking ahead, the Momentum indicators give us the following signals: the RSI is 66 (bullish); PPO lines may continue direction in the coming days. This constellation is the basis for my opinion: the sideways trend is more likely, but the index could move downward to Pivot P.
Performance of different groups of Digital Assets (Coins and Tokens)
The crypto markets picked up different directions, Bitcoin grew while tokens and coins fell over the last week. The table shows that the total (NWST1100) index fell by 0.64%. Tokens reported the biggest losses.
Digital Assets decoupling
The breakdown of the market into groups represented by 2100NEWS DA indexes enables us to measure decoupling much more accurately than can do others who do not have the tools in the form of a full range of indexes. Over the last two months, Bitcoin and the other markets have decoupled. Their prices did not follow Bitcoin because they were providing fuel for Bitcoins rally.
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)
over the last 12 months. In the last two months, all four A50R lines were oversold. At the same timespan, the Bitcoin price was rising and the chart below shows that it outperformed the other crypto assets.
*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.
Crypto (Digital Assets) compared with global equity
We have already shown the superiority of crypto investments as a new investment class. For the sake of objectivity, we review various timespans, however, the chart shows that crypto investments are superior over various timespans. The chart below compares the performance of the average represented by our NWST1100 Digital Asset index with the average global share represented by the Dow Jones global W1Dow index. The Percentage Change Marks on the chart shows that this year NWST1100 outperformed W1Dow by 96.5% while over the last 12 months, NWST1100 was 42.5% higher. The blue curve is the average index price over the last twelve months. We can see that the NWST1100 spot price is 27.1% higher than twelve months index average price. This means: If we bought one NWST1100 every day over the last twelve months, our investment is recording 40.2% gains today.
*The box in the middle of the chart shows the original NWST1100 price, at the bottom of the chart is W1Dow.