Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. Over the previous 3 weeks, our portfolio has been steadily declining and repeated market movements. However, over the past week, the market has experienced the largest shock, during which many altcoins have collapsed by 30% or more. Let’s take a look at how it affected our experimental portfolio:
It can be seen from the table that this drop has a strong impact on our portfolio. Its value fell by 16% and this is the largest decline since the collapse of the entire crypto market in May this year. The portfolio lost almost $12,000 in a week. At the same time, it is important to note that none of the assets were able to hold on to the previous levels and rolled back down.
Ethereum lost the least in price. It dropped by 2.7% and is currently at $4,385. However, during the general decline, the chart dropped to the $3,500 level. Buyers were able to bring the price back above $4,000 almost immediately. The chart situation looks rather complicated now. If in the next few days the price does not reach $4,600, then Ethereum may decline to $4,000 again. This is where the biggest resistance occurs.
XRP fell by 11.81% and is now traded around $0.85. At the same time, during Saturday’s fall, the chart fell by 50% and reached $0.60. It is difficult to say in which direction the price may go further. Buyers are in no hurry to buy the asset and are in the waiting stage. This indicates the weakness of the market at the moment. Therefore, we think that XRP may soon decline to the $0.70 area.
Bitcoin followed XRP and lost almost the same amount – 11.92%. The price has rebounded almost 20% from its local low that was formed on Saturday, and is trying to gain a foothold above $50,000. At the same time, the price has already tested the upward trend line from the bottom up and was unable to overcome it. In addition, a Doji candlestick was formed on the daily timeframe. All this suggests that Bitcoin may soon go down again. Most likely, the price could drop again by 10% -15% and test the $43,000 zone.
Litecoin has lost 20% of its value over the past 7 days. Moreover, the price has broken through the lower border of the ascending channel and consolidated below it. Buyers still do not make any strong movements after the collapse, and the price fluctuates around $160 level. If Bitcoin begins to fall, it will provoke a reset of positions in the Litecoin market, which can lead to a potential drop in the range of $110 – $120.
Most of all, this market situation affected CRPT. Its cost has decreased by half. The price dropped to the global support level near $0.12. Because of this, many indicators were in the oversold zone. We expect to see a sideways movement of the chart for some time, which is necessary to gain new positions.
The past week turned out to be one of the worst for the cryptocurrency market in 2021. The entire market, without exception, experienced the strongest collapse. This led to an imbalance in our portfolio, so today we will sell part of the least fallen Bitcoin and Ethereum, and with these funds, we will buy the rest of the coins in the portfolio:
Despite the fact that the crypto market has experienced a strong decline, one cannot relax. There is a threat of a repeated decline of 10% -15%, which could lead to more liquidations on the market. At the moment, it is undesirable to enter purchases; it is better to wait for confirmed reversal patterns and moderate risk.