Premium Daily Crypto NewsletterOctober 4, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Jump But Then Stagnate Again
Minor Short Squeeze Isn’t Enough To Kickstart Sustained Growth
Today a nice little pop helped us recover some of the market cap we lost yesterday.
As I mentioned yesterday, rising shorts could predicate a small short squeeze, which is definitely what we saw today, but ultimately the move would still trend downwards without more volume.
We’re still expecting a test of the lows, but interestingly we’re seeing a lot of good altcoin ratios, which could signal bullish for us.
Ultimately, however, this market is dominated by the large caps and they are clearly not moving very much.
In today’s news, we didn’t see much that was mind-blowing, hence the flat market.
Still, we should mention some of the recent news that has definitely cemented this week’s focus on Wall St. and regulation.
For one, we saw Poloniex de-list three assets and remove margin and lending products for US clients.
Remember that Poloniex is owned by Circle, which is in turn owned by Goldman Sachs, so any move Poloniex makes is really an extension of Goldman’s will.
It certainly brings back memories as I used to enjoy talking to other traders on the Poloniex trollbox before they removed it in June of 2017. Poloniex also used to be my main platform for trading before I switched to Bittrex and then later Binance when it launched.
Still, Poloniex has always played a role in this space, and it’s bittersweet to see it so different a year later.
This is easily Goldman preparing the platform for more regulatory compliance. As the regulatory landscape is shifting every day in this space, it makes sense that they’re playing it safe.
Speaking of, let address the big news from yesterday regarding US regulation.
A ruling on Wednesday declared virtual assets to be commodities, bringing virtual currencies under the CFTC’s jurisdiction.
“This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets. This ruling…recognizes the broad definition of commodity under the CEA, and, also, that the CFTC has the power to prosecute fraud with respect to commodities including virtual currencies. We will continue to police these markets in close coordination with our sister agencies.”
So, what’s the importance of that? Didn’t I cover this yesterday with Giarcarlo’s remarks regarding the CFTC’s role?
Yes, I did, but I want to stress on this point a little more: this opens the door just a little bit wider for the Bitcoin ETF and other subsequent exchange-traded products.
Well, the main criticism that the SEC has levied against the ETF applications it has shot down has been regarding market manipulation and the apparent lack of any means to stop it. The SEC’s job is to protect investors, and they argue that such a heavily manipulated market is the antithesis of safety.
Or so it was until the CFTC was granted this new jurisdiction. Now we’ll have more clarity regarding the cryptoasset regulatory landscape, and we also got further confirmation that Bitcoin is a commodity (which we already knew but it’s still important).
In a sense, this gives the CFTC the power and authority to go after the fraudulent actors in the space, and in turn combat the market manipulation by stamping it out at its source.
Of course, that’s putting the cart before the horse somewhat.
There’s never been a market like the crypto market, even if it’s reminiscent of other markets. The CFTC could prove ineffective in this new and challenging space, which would also prove to be a red flag against the Bitcoin ETF.
TIme will tell how this will go, but ultimately it is a step in the right direction.
At the end of the day, we have to welcome regulation that helps the space grow in a meaningful way.
If we want adoption, we first need to prove we deserve it.
One interesting addendum is that the SEC opened up the GraniteShares Bitcoin ETF, the GraniteShares Short Bitcoin ETF, the Direxion Daily Bitcoin Shares, the ProShares Bitcoin ETF, and the ProShares Short Bitcoin ETF for public comment.
What’s really interesting is that these were all previously denied applications. They will all be closed again and decided on by October 26th, 2018. They are all still consider denied unless the commission decides otherwise.
No concrete reason was given for why these were reopened, other than citing “Commission Rule of Practice 431: Commission Consideration of Actions Made Pursuant to Delegated Authority” subsection (e) which reads as follows:
While likely nothing should be made of this, it is intriguing to see the SEC going back through past applications.
All eyes should still be on the yet-to-be-decided VanEck/SolidX Bitcoin ETF, but nonetheless, this could indicate something we can’t see at this moment.
Time will tell.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). 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:
- Ripple(XRP) is showing positive activity but we don’t want to chase after it.
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
In today’s video I share the levels that need to break to either confirm the continued uptrend on BTC and ETH, or change polarity to a downtrend. We also have a new coin for our swing portfolio. (GVT)
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.