Premium Daily Crypto NewsletterSeptember 5, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Sell Off Despite Yesterday’s Bullish Indicators
Bitcoin Drops Back Below $7,000
As I said yesterday:
“Always be on the side of caution when market analysts are predicting a “breakout”, because price does not always follow the rules of lines, patterns, and common sense. We are very much on a tightrope, and remember that we’ve gone through 8 months of the bear simply based on fear.
What happens when something actually bad happens tomorrow? Is it priced in or will the market revolt?”
I’m not going to declare I have a magic ball; just a keen intuition for when the dominos are precariously placed.
On May 2nd, Goldman Sachs announced they would be offering OTC Bitcoin trading for accredited investors.
Given that this was on the tail-end of the one and only rally exceeding 100 Billion this year, it’s hard to say if it moved the market at the time. However, today’s announcement that they’re halting those plans certainly did.
“At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs spokesperson Michael DuVally told Reuters.
This comes after a new, openly pro-crypto CEO recently took the helm and that Goldman had originally planned to have their trading desk operational by June.
It’s worth noting that Goldman is not fully stepping away from crypto, as they’ll now focus on a custody product for crypto allowing them to hold cryptocurrency on behalf of large clients and track its price.
What’s also worth noting is that we have had multiple 20+ Billion moves in the month of August, both positive and negative. While it doesn’t exactly soften the blow, understand that today’s move is normal and not some sort of “bloodbath”.
After all, are we not used to moves like these by now?
In its immature state, the cryptocurrency market trades like a single equity.
Compared to the stock market, where a single bit of bad news can drop the price of a stock, we see the same phenomenon on display for the whole crypto market. After all, today’s Goldman news only affected Bitcoin and as we covered wasn’t even that bad, but the market sold off all coins regardless.
The big differentiating factor between the stock market and the crypto market is that crypto is open 24/7 and much more susceptible to the hype / FUD / FOMO cycle.
So while people will try to point fingers and find scapegoats for when the market sells off, remember a couple things:
First, no one was questioning the state of the market when we had two consecutive weeks of positive movements. Now that the market has sold off, suddenly everything is terrible again, yet we’ve only reset to where we were last week.
Second, just about every news site was declaring the bull run to have started yesterday. Always be on the lookout for alignment in opinions like that, and act against it.
Finally, finding culprits for everything is meaningless in a market that is moved by anything. Yes, there was a direct correlation of today’s news to today’s price, but generally, there are a million different reasons for why the price is moving in one direction or the other.
I’m much more intent on watching purpose than price. What is the purpose of today’s market? To bleed off the weak hands. What is the purpose of the inevitable SEC decision on the Bitcoin ETF? To bleed off the weak hands. What is the purpose of such a volatile market that moves double digit percentages a day? To bleed off weak hands.
Always remember: The brick walls exist for a reason. They exist to keep out those who don’t want it bad enough.
Do you think those who’ve held for years are shaken by days like today? No. Their resolution is ironclad because they care more about purpose than price.
You should too.
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 over the weekend!
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
A little excitement today….this is more like it, because markets continually grinding higher cause FOMO and that is never good for investors. In today’s video I show how to use Fibs to “frame in” the price action for decisions going forward.
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..
We’ve started to do some swing trades on alts, tracked in the previous section. I am mostly focusing on the top 10-20 coins for now until we confirm that we’re back into an overall bull market.
I am doing the majority of my Technical Analysis work on TradingView, and I have a BitFinex app on both my iPad and Android smartphone. All of these charting platforms call a TradingView API. TradingView is the 800 lb. gorilla in the Crypto charting space until the “established” players want to make a go at Crypto, like Ninjatrader, Tradestation, eSignal, Sierra charts, etc. My sense is that TradingView has such a head start that it will be very difficult for the big boys to make a dent in this space for a while. Until that point, TradingView has almost a monopoly in this space. If you have a particular tool that you think is superior, please let me know. You can access the BitFinex and TradingView platforms for free, however there are some paid features that you might want to consider depending on your needs, such as expanded watchlists, different study sets, account alerts, etc.
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.