Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. Last week, it declined by 11% in the course of several drops on the crypto market. However, the current situation around cryptocurrencies does not add optimism and the entire market continues to fall. Let’s take a look at how this affected our portfolio:
The price of Bitcoin this time fell by almost 2% and is $43,300 at the moment. However, most of the time the chart was in the $41,000 – $43,500 range. Bitcoin went sideways this week. This indicates a high level of uncertainty in the market in recent days. Market participants are waiting for further developments and are in no hurry to buy the first cryptocurrency. The $40,000 – $41,000 level is the key support, near which buyers start purchasing actively. If the bulls can overcome the $44,700 mark and gain a foothold above it, this could mean a reversal and new local highs.
Ethereum price fell by 4.11% this week and dropped below $3,000 again. Moreover, the chart temporarily dropped to $2,700, but buyers were able to get the price back. The key level is in the $2,600 – $2,700 range. This is where we’ve seen strong buyers’ reactions on several occasions. So far, the Ethereum chart almost completely repeats the movements of Bitcoin and practically does not deviate from it.
For the first time in our experiment, it happened that two coins share one place according to the weekly result. So, XRP also fell by 4.11% and shares the second line with Ethereum in this indicator. However, the XRP chart has formed a small upward structure and may show a rise to $1.01 over the coming week. This will happen if Bitcoin continues to stay flat, otherwise XRP may follow the first cryptocurrency like the rest of the crypto market.
Litecoin has lost almost 7% of its value over the past 7 days. Its price dropped from $161 to $149. Oscillators indicate that the chart is significantly oversold and has been in this state for a long time. The price moves near the downtrend, but hasn’t broken it yet. This situation gives us the opportunity to assume a slight increase in Litecoin to $170.
CRPT also showed a downward trend last week. At the same time, buyers made several attempts to break up, but they did not succeed. The chart is still in a falling wedge, which is a reversal pattern. Moreover, CRPT is even more oversold than Litecoin. This gives a high chance of strong movement in the next few weeks. The nearest resistance level will be the $0.20 level.
Our portfolio dropped significantly during the September downturns. However, we have not rebalanced yet this month. Today, the assets have gone out of the allowable shares, and therefore we will be rebalancing the portfolio. This time we are selling part of BTC, ETH and LTC. We use the proceeds to buy CRPT and XRP in our portfolio:
Today is the last day of September, which has once again become negative for the entire cryptocurrency market. China once again bans and fights cryptocurrency. This led to the emergence of negative sentiment in the market. It is possible that next month will correct this situation and the market will return to growth.