Premium Daily Crypto NewsletterAugust 29, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Top Out
Can Bulls Keep Momentum Or Will The Volume Fade?
The markets topped-out after our multi-day bull trend, leaving us essentially neutral for the day.
This is what we’ve seen time after time in this bear market: a reflexive bounce of a perceived bottom, followed by a day or two of bullish strength, followed by a languishing week or more of decreasing price and volume.
That said, it is certainly a market less captured by fear and false expectations than what we saw at the beginning of this month. Instead, we see a market driven by a reluctance to sell combined with an uncertainty on where to go. A literal rock and a hard place.
It’s certainly safe to wager that the market is waiting for something, some catalyst to give it credence to care. Love it or hate it, the Bitcoin ETF captured the mind of the market because it was such an easy narrative to follow. We saw the bull run at the end of 2017 for the same reason: any investment was a good investment and some were great investments, which is a very easy and compelling narrative to follow.
Again, we find ourselves ready to believe in something. But what?
If institutional money is going to drive this space towards a new level simply unobtainable with present methods, what is the catalyst of that?
Perhaps a sign of what is to come is that large stock exchanges are beating down the door and racing each other to get first mover advantage. The more we learn about the NYSE’s sister exchange, Bakkt, the more it excites us.
And now today, we’ve learned that NASDAQ, the second-largest in the world by market capitalization, will also be launching their own exchange, with large coins such as Bitcoin and Ethereum being listed and tradable on the NASDAQ itself.
“The conversation around listing coins has centered on how they will be classified from a regulatory standpoint. As you can imagine, our leadership is closely connected to the rumbling at the SEC and CFTC around cryptos and what is expected over the next 3-6 months. Even with the longest of time frames assumed, some guidance will be provided and I expect we will act quickly. The framework (two different sets of framework based on two different regulatory outcomes) has already been laid to create a separate silo for coin listings and a robust trading apparatus. Doing the math here, look for regulatory bodies to provide guidance in Q1 of 2019, and an announcement and a ‘coin exchange’ to either be announced or launched in Q2 of 2019.”
Ok, excellent. But what does this mean?
It’s simple: Regulation. That is, those who have the power to work in equal measure with regulators and whose foray into the crypto ecosystem would be measured, careful, and work closely with regulatory back channels.
So this is what I foresee occurring as we end the year and especially as we move into 2019. Regulation, regulatory compliance, and in general the legality of the space will change. It will be a complicated, messy matter. But it is necessary, and absolutely worth the pain.
Moreso, we now see that the CBOE / CME have Bitcoin Futures, CBOE has backed the VanEck / SolidX Bitcoin ETF, NYSE’s parent company ICE is forming Bakkt, and now NASDAQ is entertaining trading cryptoassets on its exchange by Q2 of 2019.
This is all huge, and the important takeaway is not just the money these powerful entities bring (which is massive), but also the way they do business. They don’t take the chances that smaller companies like Coinbase, Binance, and Gemini do. They move slowly, deliberately, and use the back-channels they’ve built over years of operation.
That is to say that they have means and methods to ensure they are acting in the good graces of regulators, and in all likelihood have direct ears with those directing regulation and compliance.
So, 2019 will be a very different animal to what we’ve seen before. The space is changing. The rules are changing. The methods are changing. Even the technology itself is changing.
This is a hypermarket, and is still extremely speculative. As we move towards this new market, the volatility will decrease but the opportunities will not.
One thing’s for sure: crypto is just waking 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. In today’s video I go over how to set your “exits” prior to entering a position.
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.