Premium Daily Crypto NewsletterSeptember 17, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Sink Due To Skeletons In The Closet
Yes, It’s Mt.Gox Again
The market was trending downwards today until some recent news caused it to fall quickly, ending the day nearly 10 Billion in the red.
So what happened?
Well, Mt.Gox, the bankrupt Bitcoin exchange that collapsed in 2014, is rumored to soon distribute $1 billion worth of cryptocurrencies to the creditors affected by the massive hack and subsequent shutdown.
While many of the articles on this topic, including large sites like Cointelegraph, tried to paint it as a coming storm which likely contributed to sell pressure today, the reality is much less newsworthy.
Wiz Security [WizSec] clarified that the Bitcoin belong to a Mt.Gox whale, not Mt.Gox itself, adding:
“A recent article quotes me as predicting an imminent BTC market crash due to MtGox payouts. This is FUD with cherry-picked quotes. MtGox is nowhere near payouts and the eventual market impact can be greatly mitigated depending on the trustee’s actions.”
Furthermore, if we actually go to the subbreddit devoted to the Mt.Gox insolvency rehabilitation, we can see the timeline is nowhere near payouts: https://redd.it/9bqxwn
Basic conjecture would have them doing distributions by summer 2019 at the earliest, and it is very unlikely they will simply dump all 160k BTC on the market at once.
It is very possible there are missing pieces to this story I missed, given the massive amount of misinformation out there, but what should be apparent is the absolutely atrocious reporting on this matter by those declaring this will “crash the market”.
As we saw with the Goldman news earlier this month, the truth is often a lot less sensationalized than the headlines would have you believe. While 100% skepticism isn’t the answer, I implore you to at least take the time to see if there’s truth to what headlines are proclaiming, especially when that claim is affecting the market.
We can see that the shorts are loving this, and I don’t blame them. We’re nearly back to an ATH for BTCUSD shorts, and with a SEC decision coming down about the Bitcoin ETF in the next two weeks, there could very well be some additional selling.
Add on to this fresh new ETH fears today. EOS, which suffered a very real 600k smart contract hack over the period of 36 hours, did not fall as far as ETH did today. So, what happened?
SEC Chairman, Jay Clayton, made a comment recently, saying:
“The Commission’s longstanding position is that all staff statements are nonbinding and create no enforceable legal rights or obligations of the Commission or other parties.”
So, what’s the big deal about that?
Well, ETH became the number two cryptocurrency cleared against security allegations earlier this year when SEC Director of Corporation Finance, William Hinman, said, “In its current state, we don’t see value regulating it [as a security].”
Or so we thought. Because Clayton’s remarks remind us that Hinman’s statement is not legally binding, it opens up the door previously thought closed: Will the SEC rescind Hinman’s position on ETH’s security status?
That question alone is why ETH is the top loser in the top 25 today, and will certainly keep up some investors at night. Personally, we find it unlikely that the Director of Corporation Finance would make such a bold statement without having concrete reasons for doing so. Additionally, that statement was made in June, so for it to live unchecked for 3 months is nonsensical.
That said, what people need to understand is that the government is very large. Even within entities like the SEC, it is possible for different departments to have different interpretations of the law. Essentially, governments are not monolithic creatures they are often ascribed as; they are made of people and are inherently prone to error.
So, hopefully, we see a concise position taken on both the Bitcoin ETF as well as Ethereum’s security status, but we may be chasing specters for some time.
Doc has started to do a frequent live “Trade School” video; watch for announcements and links in the “Premium Chat” room of our Discord site.
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 Twelve is now available. Episode Twelve goes into the topic of “market manipulation.” Why it happens, when it happens, and how to protect yourself from it. 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
Our Weekly Premium-Only Livestream
Our next scheduled Premium-Only Livestream is scheduled for 19 September 2018 at 8 PM EDT (UTC/GMT -4 hours). Watch below for new link. Doc has also been doing a daily “Trade School” video with links in the Premium Chat room of the Discord page.
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New to Cryptocurrencies? Check out our archived classes “Intro to Cryptocurrency Trading”, “How to Find Your Next Big Cryptocurrency: Intro to Fundamental Analysis,” Mav’s class on “Security and Wallets” and Doc’s classes, “Introduction to Technical Analysis” and “Short Term Trading Strategies” which are now all available for immediate purchase in our Store, and seconds away from viewing in the Premium Member’s Home. View more about them at our online store by CLICKING HERE.
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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
Check out our new merch store! Simply go into the regular store and select “Merchandise” to pick up some RSC merch!
Offense – Adding Trades
Offensive Actions for the next trading day:
- Potential swing trades showing on ETP/BTC, DOGE/BTC, and ETH/USD; please view today’s video for setup information.
- If the $100 support level holds we’ll look to add XMRUSD to our managed portfolio.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
- ETH/USD 2% added 8/10/2018 @ $363.14
- ETH/USD 2% added 9/9/2018 @ $200.50 (10% 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 pulled out the Fibs today to show how to evaluate price levels and understand probabilities of holding that level; BTC looks like it might re-test $6100 again. ETH is still hanging in there. Few other setups while we process the Bear; this is all part of the plan, folks.
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.