Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. Let’s take a look at how this week on the crypto market has affected our portfolio:
The past falls have greatly changed the state of our portfolio. Its value has dropped by $6,500, or 11%. At the same time, absolutely all cryptocurrencies showed negative dynamics and fell by tens of percent. Most of the fall occurred in the first half of this week.
Bitcoin lost the least value this time. Its price fell by 8.5% and again dropped below $45,000. However, over yesterday’s day, the price of Вitcoin has already increased by more than 10% from its bottom and consolidated above the support level. This movement may continue upward up to $46,700. Several signals indicate this level at once, which indicates a possible resistance level above this zone.
XRP followed, the price of which fell by almost 11% and reached $1. However, during the fall, the XRP price dropped significantly lower, all the way down to $0.86. Indicators indicate that the XRP chart has been heavily oversold. But buyers were able to squeeze the price out of this zone pretty quickly and XRP grew by 15% over the previous day. The closest zone where XRP may come is the $1.10 level. This is where the major resistance level is located, from which XRP has shown growth in the past month.
CRPT fell 12.55% and dropped below the $0.15 level. For most of the week, the chart tested the downtrend and even managed to break it up. However, the general drop in the cryptocurrency market led to another decline. But at the same time, buyers quickly bought back this fall and again returned the price to the downtrend line. CRPT may come in the $0.16 – $0.17 range in the coming days, where there will be a struggle between buyers and sellers. Now there is a high chance that the bulls will take higher and then the chart could quickly rise to $0.20.
Ethereum fell even more. Its price lost 14.62% over the week and dropped to $3,121. However, yesterday the Ethereum chart fell significantly more. Its price dropped to $2,650, but the bulls were quickly able to bring the price back. On the daily timeframe, a bullish engulfing has formed, which can lead to the growth of the chart to $3,400.
The leader of the fall this week in our portfolio was Litecoin, which dropped 16% to $160. The schedule of this asset is significantly different from the others. Many indicators pointed to the chart being heavily oversold even before the market drops this week. However, the general rise in the market allowed the daily candle to close well. Several signals at once indicate that Litecoin may rise to $180 in the near future, which only strengthens this probability.
Despite the strong fall in the market this week, the shares of coins in our portfolio have not changed much and are in line with the established boundaries. Therefore, this time we will not rebalance the portfolio.
The past 7 days have been extremely busy for the cryptocurrency market. Many assets fell by 20% – 30% and have already begun to grow back. As we expected, the current week has brought high volatility. This trend is likely to decline as a lot of players exited the market during large liquidations during the crash.