Market Report: 17th August 2018
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CRYPTO NOTE
The daily view from our desk
What a better day than Friday. We previously defined ‘REKT’ as a state when one loses money in crypto. Well, in Johnny Depp’s books, it means find poo(from your ex. wife) on your bed. Literally. Okay so, would you rather go to a UK chicken nugget festival to supplement your bitcoin dips? Amazon cinema? Or an Arsenal — Chelsea game? #LoadTheDip
TRADERS ON THE STORM
Like a bull without a chart, a support out alone
Another weekend around the block means 72 hours without a LBX newsletter. What to do now that many are arguing whether it’s safe to buy alternative cryptoassets again — considering some projects jumped 90% since Tuesday’s ‘at-least-temporary’ capitulation — and that most are anticipating big moves for both bitcoin and ether?
Crypto markets move in mysterious ways but in the end everything boils down to supply and demand. So, we recommend recapping how they work. Hsakajust wrote a “short primer on one of the most fundamental aspects of trading”. You can also search for Order Flow to learn more about this old topic. On this topic, check out Tensor Chart’s guide.
Additionally, why not engage directly with some well-regarded traders? Some are opening up their Twitter Direct Messages to answer questions, including Hsaka and Alex Krüger — who we debuted as “one of the most undervalued accounts” back in June following this thread on poor ‘TA’, ‘FOMO’, and becoming a better trader.
I’M STILL ‘TOSHI FROM THE BLOCK
Don’t be fooled by the dips that I’ve got
Lastly, we recommend following some Telegram channels (note these are not group chats) where traders report their moves in real time and analyse their performance. CryptoCred has one of the best — found here. It’s important that whoever you follow doesn’t promote paid groups nor ‘shills’ other projects. Join us too, and share your favourite!
Nevertheless, what are the key levels to follow as sentiment seems to be turning bullish again, with the top 100 alternative cryptoassets rising 10% on average over the past day? This last week, apart from some wicked moments, bitcoin has been stuck between £4.7k ($6k) and £5.2k ($6.6k). Thus, it’s relevant to watch BTC’s moves around these levels.
The bulls are watching the way that altcoins are rallying and how the original cryptoasset keeps tickling the resistance wall, whereas the bears are looking into this fractal, based on similar price action that took place in June — anticipating the possible drop that could conclude the capitulation process, as Trading Room suggests.
WHAT TO LOOK OUT FOR
Filter the noise and stay ahead of the pack
▪ Bitmain’s IPO 38-slide deck has attracted a lot of attention, even though a selected few slides were in English. Lucky for us, Jane Wang has now translated it.
▪ VET was yesterday’s top performer, with a 72% gain, putting it back to its August 3rd levels. Curiously, that day VET announced it was developing a solution for China’s vaccine crisis, and yesterday NASDAQ reblogged those news.
▪ Do you miss 2017’s juicy ICO returns? Check this visualisation of most ICO’s returns since 2014 coloured by year, courtesy of Cryptokita. Ether continues to be on top.
WHAT TO READ TODAY
An insight a day could give you more profits to play
▪ The videos of last May’s ‘Refactor Camp 2018: Cryptoeconomics and Blockchain’ conference are now available. Taylor Pearson summarised them all.
▪ As crypto markets recover from ether’s exceptional summer slump, Distributed Global’s Jonathan Cheesman believes this dump was an important “wake up call for Ethereum”.
▪ Santiago Siri is a popular Ethereum crypto-hacktivist and co-founder of democracy.earth. The non-profit supported by Y Combinator was just featured by Wired in this great piece.
FOUNDATIONAL TRIVIA
Because the building blocks of crypto needn’t be irrelevant
Capitulation is about giving up all hope. In trading, it can be identified when investors panic and want to #exitallcryptomarkets, causing volume to jump to record highs.