Premium Daily Crypto NewsletterOctober 17, 2018
Watch this video to see how to use this newsletter. Click the square in the lower right to expand the view.
Check Out Doc's Trading Book
Have You Read Our Free Ebook?
Crypto Market Commentary
Mav's Daily Commentary
Market Continues Sideways Movement
Are We Increasing The Probability Of A Breakout?
Today carried the torch from yesterday and continued to do exactly . . . nothing.
With the total market cap fluctuating a total 2 Billion today, there really wasn’t much to write home about in terms of price.
That was also reflected in today’s news as well.
Chicago Mercantile Exchange (CME) announced the average daily trading volume (ADV) of Bitcoin futures in Q3. Surprisingly, despite the lackluster market in Q3, the CME has revealed that the ADV increased by 41 % in Q3 over Q2, while open interest (OI) — or the number of open contracts on Bitcoin futures — has risen by 19 percent in the third quarter.
Now, importantly this uptick could actually tied to continued market suppression. Earlier this year the Federal Reserve Bank of San Francisco alleged that the recent decline in the crypto markets had been caused by the Bitcoin futures launch.
They considered that the “subsequent fall in the price” after BTC futures trading did not appear to be a “coincidence.”
What can’t be argued is that the reduced volatility is attractive to institutional investors and regulators. Venture capital investor Garry Tan, who invested in Coinbase, said, “a low price range helps investors enter a new market or an asset class with significantly less risk,” continuing:
“The crypto winter generally makes it safer for super-long-term oriented Yale-model institutions to enter at a price that isn’t dangerous. You know what is scary? Investing and then immediately seeing an 80% drop. That is hard to recover from.”
While that’s a nice sentiment, it does add to the frustration when we’ve see month after month of good news and yet the price continues to languish.
News such as: NYSE announced the launch of regulated cryptocurrency brokerage Bakkt to better institutionalize the cryptocurrency market coming sometime in the next month or so. Coinbase and BitGo received the approval of regulators to operate as custodians to service institutional investors. Citigroup and Goldman Sachs announced their plans of establishing crypto-focused custodian solutions.
Brokerage giant TD Ameritrade recently announced the launch of ErisX, the first regulated multi-crypto futures market with Bitcoin, Ethereum, Bitcoin Cash, and Litecoin support. Finally, this week we saw Fidelity and NASDAQ reveal plans to open cryptocurrency exchanges.
So what gives?
The biggest delimiting factor has certainly been the lack of trading volume. Unless already comfortably in profit, a drop in volume is never something you want to see. Overall sentiment attached to crypto isn’t the most positive right now. Bitcoin effectively nose diving since last years all-time high has created a steady wave of interest decline across the board.
So, on the opposite side, is it the right time to be accumulating Bitcoin?
Well, the market has certainly shown intense seller fatigue throughout September and October, making it unlikely that we’ll see a massive downside movement in the weeks to come. Quite simply, the probability of the dominant cryptocurrency dipping below the $6,000 support level for an extended period of time is low.
Thus, a final shakeout could be in the works prior to a major mid-term rally. Generally, the low rate of volatility Bitcoin has shown throughout the past three months, particularly this month, will help fuel the next mid-term rally.
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
Our Weekly Premium-Only Livestream
Join us next Wednesday October 17 at 6pm ET (New York) for a special class with Mav. “20 Cryptocurrency Tips & Tricks I Wish I Knew When I Got Started!” Watch the space below for details. Doc has also been doing a regular “Trade School” video with links in the Premium Chat room of the Discord page.
Our Public Livestream
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.
Check out our BLOG for the latest videos, posts, and Podcasts! Click this link and bookmark the page!
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:
- Good price action showing on XLMBTC for our portfolio if the price breaks the recent lower high.
- LINKBTC and GVTBTC are showing potential breakouts with good energy for swing trades.
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
Good price action showing on XLMBTC for our portfolio, and LINKBTC and GVTBTC are showing potential breakouts with good energy for swing trades. .
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.