Summary Report — February
If there was a picture that best summarized the market for February this is definitely it!
We last left the end of January in a direct situation. The market had a major correction after experiencing a massive bullish rally. Some thought the industry was dissolving, other thought the bubble had burst, we traders embraced the volatility as an opportunity to make some gains. This 50%-80% corrections validated the market and gave traders more technical analysis (TA) to use while executing trades. The dips also allowed us to add more buy positions into our portfolio at a more advantageous price point. These consolidation periods are starting to emulate the foreign exchange markets. With our team having major success in those volatile markets conditions we smell blood and we’re ready to attack.
Summary:
- Weeks News
- Government Policy News
- Change in Portfolio
- Performance Review
- Recap on the Markets
- Top 3 Coin Chart Analysis
Important News This Week
- In an interview with the Wall Street Journal, John Rayne, Chief Financial Officer of PayPal, said “Bitcoin is likely to become a popular payment method. However, at this stage, it may not be appropriate as a method of payment for businesses, given it’s volatility.”
- The payment company, Circle, acquired the Poloniex crypto-exchange. Reports by Fortune claim that Circle paid about $400 million for it.
- Coinbase’s wallet and the GDAX exchange now support Segwit.
- In its annual 10K report, Bank of America, expressed concerns of the bank’s profitability with businesses who deal in crypto currencies.
News From Governments
U.S. — The U.S. Banking committee and SEC both agree to adopt decentralized technology but still struggle to define responsible regulations. The term crypto-assets is preferred over crypto-currencies. Utility based tokens are not not to be considered assets. Each state passes individual tax laws on crypto assets.
Canada — Toronto-Dominion Bank, one of the largest banks in North America, has announced that it will not allow the purchase of crypto by credit card.
Europe- After a meeting about digital currencies this week, the European Commission stated its position on a number of issues. A few points it mentioned:
- Europe should adopt the use of Blockchain due to it’s technological potential.
- The speculative value of crypto currencies puts investors at risk.
- Better KYC (Know Your Client) needs to be implemented.
Israel — Israel passes tax laws on crypto-assets. The Israeli Supreme Court ordered Bank Leumi to allow its customers to trade in Bitcoin through their bank account.
Venezuela — Understanding the lucrative nature of ICO’s Venezuelan government’s issue of a national crypto currency, inspired countries like Turkey and Iran to plan on creating their own.
The questions from last month are still in play: how long will it last, where do we fit into this, and what can we expect for 2018, moving forward?
Changes in the portfolio
We are still driving towards our ICO for Quarter 3 of 2018. Our plan to airdrop tokens to our early investors is still on track.
We did not open any new positions with additional coins in the past month, we were actively pouring in more money into our existing buys, especially as the market is correcting and testing structural lows.
Performance Review
This has been a scary month for our crypto community, but if we step-back an analyze the market as a whole not just MoM or YoY we will see that we are still an average of 10,000% positive YTD. All about the perspective.
Recap On the Markets
From January Update:
“We closed out the year with a all-time-highs bitcoin among other alt-coins continues to face increased scrutiny from regulators, giving more time for bearish commentary to influence investors’ decisions as well. Apart from that, there are some businesses that are also showing doubts about the cryptocurrency. Then again, keep in mind that bitcoin price has historically fallen for January for the past few years before regaining traction much later on.
If the market breakouts over the resistant trend line at the 13,000 level we should also see rallies that test the 17,000 levels as target 1 and 20,000 levels as target 2.
As an investor or client, you should understand the volatile nature of this space. Cryptos are still an under developed industry that is prone to market manipulation due to lack of regulation and also normal market fluctuations you’d experience anywhere else. Coming from an FX trading background perspective these types of market corrections are nothing out of the norm. Our CMO (with extensive trading experience) Patrick Benske can attest to this as well.
We must stay steadfast in our belief in the industry and the coins that we selected. Although it is very possible to make multiples of your money with a small time frame we must step-back and lake a long view perspective and position.”
EDIT: Our trading bot should be complete in June 2018.
Bitcoin ($BTC)
BTC stabilizes price as it inches closer to the $10k level. There you can see significant resistance which could drop price back to the $8,200 zone or if a breakout occurs + a daily candle close above our resistance, the next test zone will be ~$13,700. Bitcoin is now testing the descending line (marked in red).
We also saw a higher low on the Daily Timeframe which could indicate a change in trend coming.
Ethereum ($ETH)
Against the dollar — the ETH graph looks to be consolidating a bit. Trading around $870 with support around $700 and resistance around $950. From there, we can return back above the $1K level. See screenshot below for more information.
Litecoin ($LTC)
The current correction in LTC is coming to a potential breakout. The first support level is around the ~$140 level and if it breaks through the second support zone is around ~$90. However, if the price action tests the first support zone and bounces up there might be a solid buying opportunity if price were to break past the trend line.
Over all the market is ready to make moves as it squeezes into support/resist zones. March should be exciting. 🤑🐂💸🌚
What’s New
Our Execs Newest Positions
Our executives Angel Mondragon (CEO) and Patrick Benske (CMO) were recently announced as Senior Advisors for a Public Company for Crypto Currency. Read Here
Whitepaper | Community
We are releasing a teaser for our whitepaper in addition to our first months results for our fund. We are releasing it on our telegram. Find the channel HERE.
Writer: Angel Mondragon. Edited: Patrick Benske.
