Premium Daily Crypto NewsletterSeptember 25, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Drop As Sell Pressure Increases
Where Do We Go From Here?
I an all-too-familiar move, the market erased much of the gains we saw last week, melting down from 220 Billion and bouncing off the 206 Billion mark three times.
It could very well be that the Mt.Gox trustee, a man known as “Tokyo Whale,” sent the market into a mild panic as he confirmed he unloaded another big chunk of his holdings.
Nobuaki Kobayashi, the trustee of now-defunct Tokyo exchange Mt. Gox, liquidated 24,658 Bitcoin and 25,331 Bitcoin cash between the creditors’ meeting on March 7, 2018, and the start of civil rehabilitation proceedings on June 22, 2018, according to an announcement posted on the Mt. Gox website today. As a result, the estate hauled in about 26 billion yen ($230 million) in cash.
What’s important is that the liquidation period is well past, and for this to affect the market is nonsense, especially in the face of all the good news we saw today.
The big news today is that Bakkt announced they will offer physically delivered Bitcoin contracts.
These will be the first of their kind, as both the CME and CBOE futures are cash settled. This indicates that Bakkt has found a custodian that is both regulated and able to handle the high volumes they expect on their platform. It’s possible they are that custodian, but we won’t know until they release more details.
What’s important here is that this is Bakkt’s first major announcement since they first launched in August, and it’s a giant step forward for the institutionalization of this space, which is the main goal of Bakkt. After all, one of the reasons that the VanEck / SolidX Bitcoin ETF is able to move the market so much is that the ETF is physically settled, unlike any other serious ETF application the SEC has reviewed.
Bakkt is focusing on ease of access, regulatory compliance, and potentially custodianship, which would open crypto to many companies, funds, and investors who were previously locked out of Bitcoin due to regulatory issues.
In their own words:
“Bakkt’s secure global platform will connect investors, merchants and consumers, making it easier, faster and more cost-effective to access, trade and use digital assets. Bakkt’s open-source, neutral platform will be designed to meet applicable regulatory requirements, and to support innovation around digital assets and blockchain applications.”
If you want an excellent article on the full scope of their plan, Fortune.com’s article is incredibly informative and well-written.
The next piece of news to consider is that Google is ending its sweeping ban on cryptocurrency-related advertising and plans to allow regulated crypto exchanges to buy ads in the United States and Japan. The new policy starts in October.
This is what we predicted back in June when Facebook reversed their ban, and we foresee that the advertising giants will continue to allow cryptocurrency on their platforms.
Google’s original restrictions, which it announced in March and rolled out in June, were intended to protect consumers and included initial coin offerings (ICOs), wallets and trading advice, which are still not allowed.
While the cryptocurrency boom has produced both excitement and wealth, it has also spawned fraud and high-profile scams, as regulation struggles to catch up with a fast-moving space. At various points earlier this year, Google, Facebook, Twitter and Snap all cracked down on crypto-related advertising to stop bad actors, though their initial hard-line approaches prevented even legitimate businesses from buying ads.
“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm that it’s an area that we want to approach with extreme caution,” a Google representative said.
Just like Facebook, they’ll restrict advertising access to companies that prove to be legitimate. While it is very much a contentious case regarding free speech, ultimately they are responsible for the users on their platform, and I’m sure they don’t want another Bitconnect serving ads.
Another giant of industry is also rolling out new blockchain plans: Walmart.
After a two year pilot, Walmart is rolling out a blockchain solution to track shipments from food to plate. Partnering with IBM, the technology will allow them to identify compromised points in the chain and respond to issues more quickly.
This is in response to the romaine E. coli outbreak this past spring, and as such Walmart is implementing blockchain technology to manage its romaine and spinach supply chains.
“Last year, Walmart conducted an experiment trying to trace the source of sliced mangos. It took seven days for Walmart employees to locate the farm in Mexico that grew the fruit. With the blockchain software developed by IBM, the mangos could be tracked in a matter of seconds, according to Walmart.”
What’s important is that this is one of the first blockchain trials of this scale. All eyes will be on the trial to see how it pans out. If this trial goes well, other corporations are sure to follow in Walmart’s steps. It’s critical that large first movers take the plunge into blockchain so that others can learn from them and follow in their footsteps.
Overall, it has been another exciting day in this space, even if price doesn’t reflect that.
We’re seeing high volume across the board, which could predicate a turnaround if enough pressure gets on the other side. We’ll see how this move plays out, but for right now it could easily go either way.
Doc will be doing a live class this Wednesday evening (and repeating it Thursday evening and Friday afternoon) on the topic “Chart Like a Pro: Four Powerful Rules for Crypto Trading.” He’ll boil down his advanced multi-timeframe Fractal analysis into four simple rules which can add structure to any system. Sign up for Wednesday’s session here.
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:
- No entries showing at this point.
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 used the Fib retracements to determine levels on ETH that would delineate bull from bear, or a “filling of the triangle.” Our swing on ETP still looks good. Little else is moving. THis massive range contraction will loosen up very soon. .
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.