Today, we keep talking about our experiment with rebalancing a portfolio that consists of the top-5 cryptocurrencies.
A week ago, the portfolio lost $3,000 of its volume due to negative events, but still remained above $70,000. Since then, many important events have taken place and have had a significant impact on the multidirectional movement of the crypto market. Let’s take a look at how our portfolio has changed over this time:
As of today, the current volume is lower by $2,400, which is a 3% loss. However, it is important to note that we have been watching the fall without any rebounds for the third week in a row. This indicates a high level of uncertainty and weakness of buyers, who do not seek to re-enter the market.
The only asset that demonstrated a positive dynamic was Ethereum, the price of which rose by 4.63% and consolidated above the $4,500 level. The chart was moving in the $4,700 – $4,800 area yesterday, but then the ETH price rolled back down following the overall market drop. In our previous daily analysis, we’ve already mentioned that there is a double bottom pattern at the Ethereum chart that has started to work out. So, the ongoing correction is a common retest of the neckline, and we are still confident about the upcoming growth. Now, a short-term price target for Ethereum is an important psychological level of $5,000.
The Bitcoin price has decreased by 1.88% over the past 7 days, which cannot be really called the collapse. The chart is currently experiencing a sideways movement between $55,500 and $59,300. Meanwhile, the price is building pressure on the upper border of the descending wedge. This may be the sign of Bitcoin skyrocketing to the $63,000 mark in the coming days.
XRP is falling week after week. This time, it lost 6.68% of its value. The chart went down and briefly broke the support level of $0.88 – $0.92. Nevertheless, buyers managed to buy back rather quickly and pushed the price to the $0.97 mark. If XRP turns up, the chart will form several reversal patterns at once, identifying both short-term and medium-term price targets of $1.40 and $1.90, respectively.
Next comes Litecoin with its price declining by 7.65%. The chart continues to move around the $200 mark, deviating slightly up and down, which indicates a certain equilibrium point. Litecoin is staying in a long ascending channel, moving precisely between the borders. Now, it’s barely possible that the price will plunge to the lower border, which is at around $176. However, this scenario gives Litecoin every chance to turn up and reach $235 in the short term and then $300 in the medium term.
This week, CRPT is down by 9.48%. The series of market falls is obviously about to end, which can be judged by the decrease in volatility and the formation of a descending wedge, signaling for a reversal pattern and another phase of accumulation prior to the new round of growth. If CRPT manages to gain a foothold above $0.30, then the price may jump sharply to $0.45.
As most of our top-five coins declined, but all of the assets remained in acceptable shares, we will not rebalance the portfolio today.
The fact that the value of our portfolio has been declining for three weeks fully reflects the market situation. Buyers are now afraid to enter new positions based on the level of fear in the market. But as we already know, there are no more ideal situations than this for taking action, so we expect to see the market reversal, followed by notable growth in the coming week.