Crypto Market Barometer released on advance-decline.net

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  Crypto Market Barometer released Today I published my simple but easy-to-read Crypto Market Barometer on our website https://www.advance-decline.net. Click here to get to the new Crypto Market Barometer. This is how the main chart looks like: What's behind the new Crypto Market Barometer We believe that one simple but effective method of gauging the health of a market is to look at how many of the most important individual assets trade above their important SMAs. Since SMAs are a proven way of determining the current trend, a market must be in an uptrend, if more than 50% of its biggest assets trade above their long-term SMAs. If they trade below their long-term SMAs, they must be in a downtrend. For the crypto market, I decided to check the popular BitPanda Crypto Index BCI10. It contains the 10 biggest crypto currencies by market capitalization, and frankly, by only looking at BitCoin, Ethereum, Polkadot and maybe Binance, we already have most of the market covered (again, in

Crypto breadth data (Advance Decline Line, McClellan indicators, over SMA 200 data etc.) for (Crypto) Indices

Market breadth data, such as Advance Decline Data, for Crypto currency indices

I am currently looking into generating breadth data, such as the Advance Decline Line, Advanced vs. Declined, the McClellan Summation Index, the McClellan Oscillator or "members above SMA50/100/200" for the crypto market.


Scouting Crypto indices

The first step would be to identify relevant crypto indices for my purpose.

This is what I've found so far:

  • S&P Crypto Indices - can't find the components so far (am I blind??)
  • BitPanda Crypto Indices
    • BCI5 (Bitcoin, Ethereum, BNB, Doge, Polkadot)
    • BCI10 (BCI 5 + others)
    • BCI25 (BCI 15 + 15 others)
  • WorldCoinIndex
  • Bloomberg Crypto Indices

 

Since Bitocin and Ethereum have the largest market cap by far, creating crypto indices doesn't make much sense if you don't have a weight limit for the biggest crypto currencies. But when comparing the prices to the breadth data, such as the Advance Decline Line, one gets a better impression if the crypto markets are rising or declining as a "market unit".

Implementation

I think I might start to implement the BitPanda Crypto indices first.

For each index, I will try to generate the following data:

  • Advanced vs. Declined for crypo
  • Advance Decline Line for crypto
  • Crypto index members above their SMA50
  • Crypto index members above their SMA100
  • Crypto index members above their SMA200
  • McClellan Oscillator for Crypto
  • McClellan Summation Index for Crypto

 

Since cryptos are traded 24/7 (right.. right??), it shouldn't matter at what time I generate the market breadth data. So I might do that before generating the market breadth data on the usual suspecds (NASDAQ, DOW etc.). 

This way, we'll have crypto market breadth data during the day.


Time frame

I think I'll start within the next 10 days. Once I started, I should have the first results within 1-3 days.


I will keep you posted.



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