Crypto Trends
I am a long-term investor in cryptocurrencies and do not often trade the asset class short-term. Primary reason is the volatility. There are days when crypto can move up or down over 10% at a time. So, since I have long-term conviction in the asset class, I just invest through simple dollar cost averaging. However, I did want to see what the trends are looking like at this time. I know it is bad but how bad really is it?
Top Cryptocurrency Price Trending
Here is a table of cryptocurrencies with their trends of price movements:
As always, the green cells are the ones where the price criteria have been met. As we can see, only Polygon has all 3 short-term price indicators favorable. Polygon is a Layer 2 blockchain that sits over Ethereum and provides lower transaction costs on the Ethereum blockchain. The only other Blockchain doing somewhat good as of now is Solana which is its own Layer 1 Blockchain. The crypto gaming sector is an important one I believe and so I track Decentraland, Sandbox and Axie Infinity to see how that sector is doing. Interestingly, it is doing better than most of the blockchains.
I added 2 additional fields to look at
How far they have fallen from their 52-week high
How much higher they have gone from their 52-week low
These give me a perspective of the overall performance of the instrument.
Price movement: Bitcoin vs. Ethereum
Note that these are all measured against the US Dollar. I like to measure the comparative performance of the top 2 cryptos Bitcoin and Ethereum to see relative performance. Note that is purely a price movement assessment and I am not going to go into the merits or functions or utilities of either of them.
The above is Bitcoin plotted against Ethereum and we can see that Bitcoin is doing better recently against Ethereum. Each Bitcoin is equal to around 18 Ethereum which is higher than the 14 it was in May.
Conclusion
As I stated earlier, I do not trade crypto short-term because of the higher volatility in the asset class. When the trend is up, I like to dollar cost average and add to my investments. Having said that, the trend is currently downward, and I will not be adding to my positions right now. I will keep an eye on the price trending and take additional positions when the trend reverses.