Today, we continue to talk about our experiment with rebalancing the Top-5 cryptocurrencies portfolio. Last time, the total value of all our assets slightly decreased and amounted to $52,500. The only cryptocurrency that demonstrated a confident upward movement was CRPT. However, starting from January 20, there was a series of falls that followed each other and this led to our assets setting new minimums. Let’s take a look at how much these events have affected our portfolio:
As you can see from the table, our portfolio declined by 9.2% to $47,767 in just one week. Most assets were in an obvious downtrend and fell by 20% on average, which reflects the current market situation.
The only cryptocurrency with positive dynamics was CRPT that has been at the top of our portfolio for the 4th week in a row. This time, the token jumped 53% to $0.22, while the chart even reached $0.26 last night. Thanks to such a strong CRPT growth, our portfolio decreased by only 9% instead of 20%. Since December, we’ve been warning you that such a scenario was about to take place, and our prediction turned out to be right. Now, we expect to see a slight correction around $0.17 – $0.19.
The remaining assets suffered quite a lot. Bitcoin has decreased by almost 15% and it is now trading at about $35,762. Moreover, a few days ago, the chart fell even lower to $33,000. Most likely, this drop is not over yet and we may see the first cryptocurrency decreasing by another 10% to the $29,000 – $32,000 area.
Next comes XRP, which lost almost 20% in a week. The asset broke the most important support level at $0.70 and consolidated below it. After that, the fall of XRP has significantly accelerated. However, the chart shows many signals for a new decline to the $0.50 level. If the price fails to gain a foothold above this level and the daily candle closes below it, then XRP may drop to the largest support level of $0.40 in just a few hours.
Ethereum lost 23.7% of its value. After breaking the $3,000 level and settling below it, the most popular altcoin fell almost immediately to $2,159. In the last few days, the price has gone sideways and now, there are several signs proving that this decline will continue in the near future. In this case, the chart may drop drastically, reaching a wide range of $1,700 – $2,000.
Litecoin was next and also lost almost a quarter of its value. The chart dropped to $100, which we warned you about a week ago. LTC has touched a global support level, where a lot of sellers and buyers are supposed to step up. If the chart breaks this level, then we can say that the asset has finally entered the bear market phase. In this case, Litecoin may plunge to $70.
Thus, we will rebalance our portfolio for the second week in a row. First of all, this is due to the fact that the only asset which goes against the market is CRPT. This once again proves that we have formed our portfolio correctly and it holds up better than the market in any conditions. So, today we are selling a part of CRPT and will further use the proceeds to buy other cryptocurrencies:
The current market situation looks catastrophic. Many coins have already fallen by 70-80% and it seems like that is not the end. There are almost no buyers and sellers on the market. At the same time, the level of fear is critically low, which only complicates the matter. It is quite possible that we may see another round of decline by 10-20% next week.