Today we continue to talk about our experiment with rebalancing the Top-5 cryptocurrencies portfolio. Let’s see how it has changed during this time:
As you can see from the table, the volume of our portfolio continued to decline this week, losing $2,750 or 3.55%. Most cryptocurrencies were on a downtrend again, which means that the market sentiment is negative. However, since the portfolio was maintained, its value has been 740% higher than the amount of initial investment. This indicates another slight correction and further uptrend continuation.
The only asset that did not plummet this time was Ethereum. The ETH value increased by 0.63%, which cannot be considered a robust growth. For all this time, the chart has demonstrated a sideways movement between the $4,000 and $4,400 levels. At the 4-hour chart, a double bottom pattern has formed, which is a signal for the following reversal. This indicates a high probability of Ethereum growing by about 10% to the $4,800 mark.
From our portfolio, Litecoin fell less this week, declining just by 1.08%. However, we saw the most significant growth during the last two days, when LTC rose by 6%. The cryptocurrency’s next target is the $230 level, where a lot of technical analysis signals indicate. If Litecoin manages to gain a foothold above this level, then the price can rise quite quickly to the $260 mark.
Over the past 7 days, the Bitcoin price has decreased by almost 4% and the asset itself is currently trading at around $57,700. Meanwhile, for the last two weeks, the chart has been moving in a descending wedge and the market volatility has been decreasing day by day. During the last few hours, the 4-hour chart broke through the upper boundary of this wedge and consolidated above it. Due to this, Bitcoin has a high chance of reaching the next important level of $63,000.
Next comes Crypterium, which lost 5% of its value. The price correction is still in full swing after reaching the local high at $0.42. At the same time, the chart shows that several reversal patterns were formed at once and have already begun to work out. This proves the fact that the Crypterium price may reach $ 0.35 again next week.
This time it was XRP, which suffered the most and plunged by 7.61%. Nevertheless, the chart reflects several important formations. One of them is a large descending wedge, which can be seen on the daily timeframe. Secondly, the XRP price tested the uptrend line, where we have previously seen a strong reaction from buyers. Altogether, this suggests that XRP may experience a new growth spurt in the near future.
As most assets continued their downtrend, there was no serious change in their market shares, so we will not rebalance our portfolio.
Last week, the cryptocurrency market began to calm down, which is evidenced by lower trading volumes and lower volatility. At the same time, reversal patterns and signals that indicate the resumption of growth have already started to form. Therefore, we expect to see some positive market changes soon.