Premium Daily Crypto NewsletterAugust 28, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Bitcoin Breaks $7,000
Bulls At The Gate Or Still Asleep?
In an otherwise relatively slow news day, the market pushed higher by 14 Billion and Bitcoin entered $7,000 territory for the first time since August 7th.
Interestingly, this recent price movement correlates inversely with a massive drop in shorts (likely liquidated) which isn’t that surprising, but also correlates with a spike in Bitcoin’s hashrate.
As the total network hashrate has reaches 61.8 EH/s, an increase of 35% over the last two days, this signifies a stronger and more secure network. It could also be a veiled vote of confidence in Bitcoin as it continues to gobble up market dominance.
Additionally, this recent spike is more than twice the entire hashrate of the Bitcoin Cash network. As they are secured by the same consensus algorithm (with key differences in ideology and block size), miners can freely switch between which coin they’d like to mine. The recent surge could have easily been controlled by a single party, which tells us that they’d rather not attack the Bitcoin Cash network and instead secure the Bitcoin network.
It’s speculation, but with such a massive amount of hashing power appearing out of nowhere, it stands to reason that Bitcoin derivatives are currently riskier holds due to their decreasing hashrate. Bitcoin Cash, Litecoin, etc., have all dropped in hashrate significantly over the past month, leaving them vulnerable to attack.
Whatever the case, the big news being touted right now is that “Bitcoin Bulls are back”, which is of course hyperbole.
Remember that we sold off 100 Billion this month based on an ETF being delayed, we could just as easily find reason to go up or down from this point. That’s not to say it’s hopeless to bet on black, but understand we are still very much in a larger downtrend and we need to see volume, interest, and motivation pick back up for us to really see the bulls come back.
That said, in the CFTC’s latest Commitments of Traders (COT) report the market is still overall net short. However, the new figure of -1266 indicates a sharp turnaround from the -1926 figure recorded earlier this summer.
This week Blockchain has drawn the attention of two of the “Big Four” global audit firms, Deloitte and PwC, both of which revealed high percentages of enterprise executives have been convinced by technology’s potential.
In the banking sector, JP Morgan CIO Lori Beer has this week said that blockchain will “replace existing technology” within a few years.
To cap it off, the South Korean government has just announced a state-sponsored blockchain hackathon to encourage the technology’s progress.
So, while today isn’t the most exciting in terms of news, it is reassuring to see us progressing, prices climbing higher, and market sentiment improving.
Let’s keep it up!
If you missed Mav’s webinar “Top Ten Ways to Create Passive Income With Crypto” then you can watch the webinar at this link.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Eleven is now available. Episode Eleven is an interview with Adam Todd of Digitex Futures which we’ll be looking to employ as soon as it’s live. Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop!
See you tomorrow!
Doc's Daily Commentary
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Offense – Adding Trades
Offensive Actions for the next trading day:
- None today.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
- ETH/USD 2% added 8/10/2018 @ $363.14. (12% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (6% more to add)
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
We’re starting to see signs of life from a very dormant market and volume is increasing! I would love to see a final, screaming capitulation (even though I know it would be rough on everyone) but that’s the quickest way to a lasting Bull. If we continue to see positive price action I will become more aggressive about accumulation. There is no medal for getting the exact bottom tick of a downtrend, so I’m waiting until markets start to reverse before getting more aggressive.
In August we introduced a new “fund” project that we’ll be creating over the next few months, in piecemeal form. I will be slowly and methodically creating a “fund” with (currently) 23 assets that we will do “live” or at least very plainly indicate where we intend to enter portions of assets. As long as the market continues grinding down in a bear, we will use sentiment-based entries to hopefully secure a better entry. All that I saw were bear flags tonight; we are close to some good entries on coins showing positive divergence on the RSI. Going forward into the end of this year my plan is to do a LOT more swing trading; what would really help is a decent derivatives exchange. I am looking for big things from Digitex in this regard, which will be a commission-free futures platform however all trades must be made in DGTX as the base currency. Put yourself on the waitlist for this platform by clicking here. I have started to acquire DGTX tokens at Mercatox in anticipation of them turning up their platform, and this looks to be a good candidate for a pump prior to the production event. Here are the recent swings that we’re tracking in the portfolio below; :
- DGB/BTC – long @ .00000608 (7/23). My target exit is .000008BTC.
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
- ONT/BTC – long @ .0008905 (5/20) My target is .0013BTC.
Please keep in mind that if you want to follow these trades, I am using FIXED RISK POSITION SIZING. This means that I am using a fixed amount of risk capital that is based on my account size, like 2%. I am assuming that the trade will burn to the ground and that I will lose that entire capital position! Only in this manner can one effectively manage a position the way that you have to. If you’ve every checked your blockfolio nervously every 5 minutes when you’re underwater, this will prevent that. I will track these positions in this area and not in the main portfolio section. I will use a public portfolio tool to do so, which you can access by clicking below:
I hope you all got a chance to catch my webinar class from earlier this year; if not, the replay is available here. If you missed my earlier webinar, “More Profits in 2018; Ten Ways to Chart Like a Pro.” then you can catch the replay here. My new class “Introduction to Technical Analysis” is now available via our online store.
If you go to buy any of our courses at our online “store” you can receive $10 off the street price with your member’s “coupon code” of member18crypto..
Coinigy is a great tool for determining prices on each exchange, however I may not have access to the full suite of tools on TradingView charts. I am currently not using it as a front-end GUI for my exchanges, which it supports.I also use Blockfolio and/or Delta to give me a quick snapshot of my holdings, and find that it does an excellent job to aggregate all of my holdings into one easy-to-read snapshot of my cryptocurrencies, which are typically located in many different places.
I am also trialing the Profit Trailer and CryptoHopper trading apps which are working well in this choppy market.
Fundamental Currency Research
For flipping Good.
For long-term holding Neutral.
What is it?
What is our verdict?
What we like: Supernodes are very interesting. No trading commissions for users.
What we don’t like: There are many exchanges already on the market. Transaction mining isn’t currently solvent.
- Project name: Bgogo Exchange
- Token symbol: BGG
- Website: https://bgogo.com
- White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
- Hard cap: 17,000 ETH (15,000 ETH during private sale and to supernodes, 2,000 ETH during public sale) for 10% of total tokens
- Conversion rate: Private sale: 1 ETH = 66,666 BGG; public sale: 1 ETH = 69,999.3 BGG.
- Maximum market cap at ICO on a fully diluted basis: $51 million based on current ETH price of $300
- Bonus structure: Whitelisted public sale participants have a 5% bonus over the private sale price, with no lockup period.
- Private sale: The private sale has already been completed with 10,500 ETH raised from 21 supernodes and 4,500 ETH from strategic investors.
- White list: Bgogo’s public sale will be a Genesis Mining event (exact date to be confirmed) that will start 24 hours before mining is officially opened to the public. Only whitelisted users can participate. Details on the Genesis Mining event can be found here: https://bgogo.com/announcement?link=mining.
- ERC20 token: Yes (will be switched to native tokens when the mainnet is launched)
- Countries excluded: TBA
- Timeline: TBA
- Token distribution date: TBA
2017- 2018Q2 Portfolio (Discontinued)
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.