Today, we continue to talk about our experiment with rebalancing the Top-5 cryptocurrencies portfolio. Last week, all assets showed negative dynamics causing the value of the portfolio to decrease by 6% and reach $50,000. This week, the market has already experienced significant events. Let’s take a look at how this affected our portfolio:
The table shows that the volume of the portfolio increased slightly and amounted to $51,625. Thus, over the past 7 days, all assets have added about 2% to their value. At the same time, almost all of them were in an uptrend and increased in price.
XRP grew the most, by 7.39%, and approached the important psychological mark of $0.80. For the last 3 weeks, the XRP price has been fluctuating in the $0.70 – $0.80 zone. During this time, the chart has formed a symmetrical triangle pattern, which usually signals uncertainty in the market. So, it is quite difficult to say where XRP will head in the near future. It is necessary to move to the indicated levels. If the chart breaks one of them, the price will have equal chances to both grow and fall by about 10-15%.
Next comes Litecoin, the price of which increased by 5.32%. For a long time, the asset has stayed near the global support level of $100 – $110. Buyers do not seek opportunities to push the price up, which is a very bad sign. Now, there is a high risk that LTC will continue to decline. In this case, the nearest level where the price will stop is $90.
Ethereum has also risen slightly this week and is currently trading at $2,767 per coin. Yesterday, we mentioned that the ETH chart had formed a symmetrical triangle and was moving inside it. Meanwhile, we still suggest that there is a high probability of the asset falling to $2,300 first and then to $2,000. In general, the ETH chart highly depends on Bitcoin now and follows all its movements.
At the same time, the Bitcoin price remained almost unchanged at the $41,000 level. For two months, the first cryptocurrency has been in a lateral movement meaning that the market participants have accumulated the asset. Now, we are more likely to see Bitcoin dropping than growing. Sellers control the situation and do not allow buyers to increase the price, which creates the prerequisites for a new large-scale decline. The nearest support level is $36,000 – $37,000. When the price breaks it, Bitcoin may instantly fall by 15-20% and bring the entire crypto market down with it.
The CRPT has been in a downtrend this week, losing 5% of its value. The asset price came close to the global support level of $0.10 – $0.12. Therefore, we expect an accumulation period of about 2-4 weeks to begin. This will allow buyers to get into position before a new surge occurs.
Our portfolio has slightly changed over this week. The shares of all assets remained within acceptable limits, so we will not carry out another rebalancing today.
All in all, currently, the market seems to calm down. The focus of the market participants is on Bitcoin and its ongoing movements. We can say with confidence that many assets are being accumulated now. However, the present situation still poses a threat of a new fall of the crypto market.