Premium Daily Crypto NewsletterSeptember 19, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets See Massive Short Squeeze
BTC Jumps $400 In 10 Minutes
The market traded mostly sideways today as the market had no real sense of urgency.
That quickly changed as we saw BTC jump in price almost $400 over the span of around 15 minutes.
So what happened?
As the market is already on shaky ground due to the recent price instability and fears regarding regulation creeping back in, it makes sense that we would see a massive spike in BTCUSD shorts as people try to get on the right side of the market direction.
The spike in shorts lasted around an hour in duration. Likely some bots jumped on the trend and it quickly snowballed as more short positions were opened. For a time we had clearly exceeded the previous ATH for BTCUSD shorts.
Then the trend changed rapidly.
It’s possible the whole thing was orchestrated by a few market manipulating whales, but it’s just as easy to blame the current state of the market and its indecisiveness.
Whatever the catalyst, what came up quickly came down as over half the new positions were liquidated within 30 minutes, spiking BTC from $6123 to $6517 in a matter of minutes.
Given Bitcoin’s market dominance, this move quickly propagated throughout the market.
While it’s easy to pass this off as a purely technical move in an otherwise stale market, I think there are deeper implications here.
We are 11 days from the SEC’s decision deadline for the VanEck-SolidX Bitcoin ETF.
As the agency wrote:
“Accordingly, the Commission … designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
The SEC will also possibly delay the decision further. By law, that would be the final time they can. That delay will likely be until some time between February 21st and February 27th, 2019. The thing to note, however, is that this is not inevitable. It is possible, although unlikely, that the SEC will give their decision on the VanEck Bitcoin ETF now instead of waiting until 2019.
I think these next few days will be a source of trepidation for the market.
Should the decision be delayed until 2019, it will be a more favorable position for approval. New SEC commissioners who are friendlier to crypto will be at the helm by then, and it will also give the market time to mature and counter the SEC’s previous reasons for denial of ETF applications.
On the flipside, days like today where the market moves in part due to regulation fears are ironically hurting chances of regulators giving it favor.
As it stands, there simply isn’t enough liquidity to prevent a small number of people moving the price significantly. The paradox, of course, is that institutional money would help abate this, but we’d be trading one set of market manipulators for another. Additionally, if we need institutional money to help alleviate liquidity issues, institutional money won’t touch crypto until regulations are favorable, and regulations are slow moving due to liquidity issues.
In short, it’s an emerging market. Nothing is perfect, but the promise of a new industry and asset class makes the pain worth it.
The next week will be critical. If we see a delay of the ETF decision, then I think approval is much more likely. If we see a denial, it will be the end of the last true ETF application currently under review. Of course, new applications can come, but as it stands we aren’t likely to see ETFs for some time.
A rational voice and staunch crypto supporter, SEC commissioner Hester Peirce has stated that the government should not limit the emergence of new products in the crypto market based on the perceived weaknesses of Bitcoin.
According to Peirce, the SEC should not force crypto markets to be subjected to comprehensive government regulation just to deploy products on top of the markets. She explained:
“The Commission should not default to a demand that the crypto markets be subject to comprehensive government regulation as a precondition to allowing products linked to those markets to be traded in markets that we regulate.”
Whatever happens, hang in there.
Doc has started to do a frequent live “Trade School” video; watch for announcements and links in the “Premium Chat” room of our Discord site.
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 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
Our Weekly Premium-Only Livestream
Our next scheduled Premium-Only Livestream is scheduled for 19 September 2018 at 8 PM EDT (UTC/GMT -4 hours). Watch below for new link. Doc has also been doing a daily “Trade School” video with links in the Premium Chat room of the Discord page.
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Offense – Adding Trades
Offensive Actions for the next trading day:
- Potential swing trades showing on ETP/BTC, DOGE/BTC, and ETH/USD; recent videos have discussed entry points.
- If the $100 support level holds we’ll look to add XMRUSD to our managed portfolio.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
- 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. (6% more to add)
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
Today’s video was about the big short squeeze that we saw in just about every major coin; this is good news as it shows that demand might be putting a very major floor in under the markets.
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..
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.