Last week the portfolio value continued to decline and dropped to $50,000 again. As a result, we carried out another portfolio rebalance. However, the market situation has changed dramatically over the past 7 days.
Let’s take a look at how this affected our portfolio:
As you can see from the table, the value of our portfolio has increased sharply and added $10,000 or 21% over the week. This is one of the best results during our experiment, which has been running since May 2020th. At the moment, the volume of our portfolio is $61,000.
The main driver of the entire market this time is Bitcoin, which grew by 27.22% over the week. This is a very strong indicator as the capitalization of the first cryptocurrency exceeded $1 trillion again. Just yesterday, the price increased by 10% and broke the important psychological level of $50,000. Moreover, the chart was able to gain a foothold above the downtrend, which indicates the strength of the bulls in this period of time. At the same time, many indicators show that BTC is overbought. Therefore, we expect the price to fall to the $52,500 area in the coming days.
Litecoin also showed significant growth and came in second place by this indicator. The price has increased by 19% and approached a major resistance level near $180. If the positive sentiment on the market remains then the price will be able to overcome this key level and may reach $200.
Ethereum is not far behind Litecoin. The price of the second cryptocurrency has increased from $2,992 last Thursday to $3,544 at the current moment. Thus, the growth was 18.5%. An ascending channel has been formed on the chart. ETH reached the upper border of the channel yesterday and has already rolled back down to the middle line. If this movement continues, the chart may drop to $3,430 in the coming days. At the same time, Ethereum has a strong upward structure, which can provoke even stronger growth than Bitcoin.
XRP is in fourth place in terms of growth, the price of which increased by 12% in 7 days. As we predicted, the chart broke through the $1 mark and hit $1,10 during yesterday’s market rally. However, a few days earlier, the price turned into a sideways movement, which may correspond to the accumulation of positions before a new rise. If XRP manages to gain a foothold above $1,14, then its price can quite quickly reach the $1,25 – $ 1,27 range.
CRPT has also shown an upward trend last week and rose by almost 9%. The coin is still in accumulation and is forming an inverted head and shoulders reversal pattern. In addition, a descending wedge-shaped structure was formed on the chart, which also indicates a possible price increase. All this indicates that CRPT may grow to $0,20 per coin in the near future.
All assets in our portfolio have shown significant growth this week. As a result, each of them continues to occupy an acceptable share in the portfolio. Therefore, we will not carry out a new portfolio rebalancing today.
The past 7 days have been extremely positive for the entire market. Most cryptocurrencies bounced off the bottom and showed significant upward dynamics. At the same time, Bitcoin became the main engine of the market, which showed very strong growth, which rarely occurs. After its transition to a small console, we can see how many altcoins will start catching up and even overtaking the first cryptocurrency in growth.