Premium Daily Crypto NewsletterNovember 5, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Market Starts Week Positive
Bitcoin Continues To Underperform Altcoins
The 5th of November was not much of a day to remember this year.
Thankfully, it seems billionaire Mike Novogratz read my report yesterday, as he echoed what I had to say: institutional investors are lining up to get into crypto in 2019.
“There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail,” he said.
“Bitcoin has to take out $6,800, and after that we could end the year at $8,800-9,000,” he clarified. “After that, though, it’s off to the races for Bitcoin.”
“By the end of the first quarter we will take out $10,000 and after that we will go back to new highs — to $20,000 or more,” Novogratz speculated.
Now, Novogratz isn’t new to the speculation game, and I’m very skeptical of anyone who claims to have a crystal ball. That being said, his $50,000 / BTC prediction last year around this time helped to kick off a wave of bullish sentiment that eventually became a tsunami.
I’d love to entertain Mr.Novogratz and his clairvoyance, but we need to constantly underestimate this market if we are to stay sane and profitable long term. On the other side, you have analysts claiming that the bear market will last another 18 months.
Someone is going to be wrong.
After all, how many times this year have you heard that the market was “due for a recovery”?
Stay skeptical. We’ll get to where we’re going eventually, but don’t buy into narrative that claims that the “price will be this by then”, either to the positive or negative.
Instead, plan for both and try your best to see what others aren’t. In such a thin market, it’s easy for investors to let their emotions cloud their judgement and perception, something that you can capitalize on.
For example, crypto scams are now among the SEC’s top enforcement priorities. Their recent annual report revealed how digital currency scams have their top priority, something we wouldn’t have seen two years ago.
In particular, the SEC is focused on ICOs — many have failed to deliver on their promises or turned out to be outright scams.
So what’s the implication here?
The knee-jerk reaction is to assume this is bad for the space. How can crypto grow if governments of the world are acting against it?
Instead, see this for what it really is: The SEC is legitimizing this space in many ways.
They understand that what is a trickle now will be a flood tomorrow. They understand what is a interesting and unique space now will be a thriving industry tomorrow.
They understand that to enable and encourage the growth of cryptocurrency and distributed ledger technology as a whole, especially in the US, they need to embrace it without limiting it.
Are they going after the top projects in the space? Are they limiting the growth of Bitcoin or Ethereum? Are they unfairly placing restrictions on what can and cannot be developed?
No, they are helping this space by artificially removing the bad actors.
For every Bitconnect that self-implodes, there is another scam that can withstand the tribulation.
Without the actions of agencies like the SEC, valuations would be much more speculative and projects more fruitless.
After all, 2017 showed us what happens when speculation gets out of control. 2018 showed us what happens when that speculation is replaced with utility and reality. 2019 will show us what the combination of utility and regulation can really do.
In essence, the best years of this space are yet to come.
It’s hard to know when the “golden years” are when you’re living in them, but what I thought about over and over again during the Vegas conference is how I will look back ten years from now at these years.
As I said earlier, it’s best to underestimate.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Fourteen is now available. Episode Fourteen is entitled “Atomic Habits and the Four Maxims of Trading.” 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:
- Nothing moving in the right direction lately. Let’s be patient.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
How to read this portfolio: Please read through the FAQ tab
- 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. (5% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
A stealth rally in the Top 20 today; markets have been trying to sell off over the past two months with no success. Now if we can just see some accumulation!.
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.
- ETP/BTC – long @ .000522BTC (9/21) My target is .00072BTC
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.