Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies.
As we can see from the table above, our portfolio decreased by $7,000 (8.3%) and settled below $80,000 again. This time, absolutely all 5 assets saw a downward trend and lost 7-13% of their value, which we consider quite a significant drop that created panic on the market.
XRP was least affected by the collapse, as the price of the coin declined by 6.3%, returning literally to its previous level. The chart structure of XRP still looks very strong and demonstrates a clear trend upwards. In the coming days, we may see this altcoin rising from 10% to 20% and exceeding the $1.30 mark.
Next in line is Bitcoin, which plummeted 7.35% and consolidated below $60,000. The chart shows the first cryptocurrency briefly dipping $58,400 at some point but it could quickly return to the $60,000 level. As of now, buyers are HODLing, thus, keeping the BTC price in an important area of $57,900 – $58,000. However, the chart structure suggests that the bears will try to break the price down to $56,000. This can happen quite rapidly, which largely impedes all the attempts to catch this movement instantly. Anyway, we do not think that Bitcoin will fall much lower. Most likely, we are now witnessing another price correction after the asset hit its historic maximum.
Ethereum lost almost the same (7.5%). Along with that, buyers did not allow the chart to fall below the important psychological level of $4,000. Ethereum left the ascending channel and is now consolidating in the $4,100 – $4,300 price area. However, the scenario of the second popular cryptocurrency falling to the $3,900 mark is still possible. It is too early to talk about the growth, as we haven’t seen complete unloading or any signs of a reversal on the chart.
Crypterium has declined by 9.90% over the past 7 days but managed to hold above the key level of $0.30. At the moment, the chart shows a common three-wave correction after reaching its local high of $0.42. So far, the price is moving within the falling wedge, which is a trend continuation pattern. We will probably see a subsequent rise to the upper border of the wedge fixed at the $0.35 level. If CRPT breaks this mark, the price may jump 20% to $0.42 – $0.44.
This week, Litecoin was hit the hardest by an overall market drop. LTC price plunged by 13.5% and, currently, the asset sits at $222. At the same time, buyers were slow to respond and buy back, probably because LTC has grown by 50% and almost touched $300 over the past 10 days. Therefore, the market participants did not seek to pick up an asset that fell by almost 20% overnight. Currently, there’s a high risk of a new decline, so we expect the Litecoin price to go down to the $200 – $207 area.
That is how it happened that the assets in our portfolio did not manage to go out of the allowable shares and that’s why we will not rebalance our investment this week. Now, as the situation remains uncertain, there is a possibility of another fall to come in the run-up to the new cycle of growth. We also assume that this time buyers will actively defend, which may stimulate a quick recovery of our top-5 portfolio to its previous volume.