21 January 2021, 11:01
2 min reading
Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. Last week, we recorded a decline in portfolio value for the first time in 4 weeks.
Today we continue to talk about our experiment with rebalancing a portfolio from the Top-5 cryptocurrencies. Last week, we recorded a decline in portfolio value for the first time in 4 weeks. This was due to the sharp decline in Bitcoin, which affected the entire market. Let’s see how our portfolio structure has changed this time:
As you can see from the table, over the past week our portfolio has dropped in value by 4,56% or $1,500. For the second week in a row, we have seen a decline in the value of the entire portfolio. Just like last time, this is due to the decline in the price of Bitcoin. However, our portfolio still exceeds the initial investment by more than 3 times.
In fact, Ethereum is the only coin that has shown growth this week. Its price immediately increased by 17% and set a new local maximum. At the same time, the day before yesterday, the schedule was literally $10 not enough to set a new ATH. In the next 7 days, Ethereum is likely to rise to $1,440 again and will be able to update ATH. Immediately after that, we expect a sharp jump up to $1,500.
XRP was the only coin whose price remained practically unchanged over the week (+ 0.64%). However, the consequences of the lawsuit from the SEC for the company continued. So, on January 19, the largest American cryptocurrency exchange Coinbase suspended XRP trading. However, this could not significantly affect the price of the asset. At the moment XRP is in the consolidation zone and may show growth at any time. If you fix above $0,33 on the daily timeframe, the chart can quickly grow up to $0.45.
Litecoin lost the least of the fallen coins — 3.22%. However, this cannot be called a fall, since the price has been moving in a wide range of $140 — $160 during the last week. The situation with LTC is ambiguous: the coin can move both up and down. In such situations, Litecoin usually follows Bitcoin, so in order to predict future chart movements, it is necessary to study the Bitcoin chart.
But Bitcoin continues to fall for the second week in a row. Moreover, this time the drop was 7,73%, which is 2,3% lower than last time. We have already said that Bitcoin is in a narrowing triangle and if the upper or lower borders are broken, its price will go in the same direction. So far, the probability of a fall is slightly higher than the probability of an increase. In this case, Bitcoin may drop to $30,000 and then to $28,000.
CRPT has significantly lost its value this week. This can be called a correction after 200% growth at the beginning of the year. At the same time, many indicators have dropped significantly, which indicates an excellent moment to buy before a further round of growth, which may follow in the next month.
The portfolio structure has changed slightly this week. The shares of all coins are within acceptable ranges and therefore we will not rebalance.