Premium Daily Crypto NewsletterOctober 21, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Week In Review
Week Stays Very Stable; Bitcoin Hits New Volume Low
This week defied our expectations after it started with a sudden burst of activity — and then followed that up with 6 days in a comatose state.
That thematically follows what dominated the news this week. Stablecoins suddenly burst onto the main stage as Tether, the market’s leading stablecoin, fell to as low as $0.92 as a market-wide selloff left a supply glut. After just one week, Tether shaved 800 Million, nearly 30% of its market cap, and still hasn’t been able to recover its 1 Tether = 1 USD stance.
Inversely, Bitcoin on Tether-supported exchanges began trading at somewhat of a premium. This in turn caused shorts to quickly get liquidated, which led to our explosive price surge.
Things quickly leveled off, but not before some of the largest exchanges in the space started weaning themselves off Tether. Huobi and OkEx both listed four competing stablecoins: TrueUSD, Gemini USD, USD Coin and the Paxos Standard. The four stablecoins, which are fiat-collateralized like Tether, are seen as transparent, regulator-friendly alternatives to what was the market’s only widespread stablecoin until this year.
What likely started this ball rolling was the allegation that Bitfinex was insolvent. They fiercely denied this, but nearly at the same time stopped fiat deposits to their exchange.
After a week Bitfinex resumed accepting fiat deposits and announced that they had upgraded its security system. The representatives were sure to point out that, “all cryptocurrency and fiat withdrawals are, and have been, processing as usual without the slightest interference.”
Nevertheless, things are awfully suspicious with Bitfinex right now.
And that’s ok, because the big takeaway from this week is that Tether isn’t the ticking time bomb it’s often made out to be. The market’s response this week is exactly what I wanted to see.
The longer Bitcoin remains ‘boring’ above $6k, the more excited you should be for the next bull run. The stronger the base, the larger the launch.
There’s also been a lot of chatter this week about an impending recession or global market meltdown. I think we’re a ways off from something like that coming to reality. There’s certainly a lot of uncertainty, that’s for sure, but what’s also certain is that the world is increasingly complex and very different from 2008.
Time will tell what role crypto has to play in all of this, but my money is on new money.
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:
- 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
.If the larger timeframes aren’t moving, (they’re not) then we can narrow our focus and look to take short-term swings, as I discuss in today’s video.
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.