Monday Crypto Market Update
November 4, 2019
The Rundown
Sorry to break it to you all but the past week for Bitcoin was neckbreakingly boring. In a 180 degree contrast to the action we experienced from the Xi shill the other week, this past week could almost be considered an anomaly. BTC luckily eked out into positive territory with a barely 90 basis point gain. Strange isn’t it? Almost as if BTC is trading like that of the more traditional markets (the S&P sneaked out a slightly over 100 basis point gain)…is mass adoption already here?
Let’s not get ahead of ourselves just yet. Adoption is a long way from now. We’re still shooting for $20 mil…well…if you take BTC’s historical price on a logarithmic scale and believe in ascending channels…
I don’t have to explain why China is the heartbeat for crypto but I’ll tell you why adoption is a long ways from now just from simple observational sampling. I’ve been situated in Shanghai, the most international and educated city in China, and the odds of finding someone being able to explain blockchain, besides muttering the words bitcoin, in a simple coherent answer is probably close to 1/1000. But as we all saw from the Xi shill and afterwards, China is moving FAST on this technology.
I was forwarded a bitcoin 101 crash course booklet from an insider here used for CPC officials after the Xi announcement went viral:
And speaking of China (which according to Trump is not the problem anymore but rather The Fed), it was very disheartening to see another biased western journalist take a spin to China’s positive initiative in harnessing the blockchain by portraying it as another chance for the CPC to “tighten state surveillance” and “strengthen its authoritarian roots”. smh. For god’s sake lets get over it. You’re looking at a country that has provided the highest percentage of hashing power, mining pools, and at one point trading volume…and you still want to squander this with an article that has rhymed the same old rhetoric of traditional media outlets?
Now to continue on the China theme, not because I want to but because, Tron (a Chinese based blockchain) has been the surprising leader amongst the top alts this past week with a 20% gain to the upside after a tough slump for them the past year with their provocative CEO having to apologize to the crypto community for too much social media hyping. A large reason for the recent pump was due to their partnership announcement with Samsung, whom will support TRX tokens on their new Blockchain Keystore SDK. And to shill TRX even more, China’s state-backed workgroup, CCID, published its latest Blockchain rankings report with TRX moving up to the second spot.
Despite the resurgence in TRX, I don’t see the token’s price continuing its recent rise due to its RSI level showing overbought exhaustion as it has hovered over the 80 level for the past few days. And its 200D MA clearly acting as resistance around $0.023. If TRX manages to close a daily candle above that level, look for the bulls to remerge again or look for it to quickly consolidate back down to the $0.017 level.
Honorary mentions goes towards BCH and XLM, whom also had substantial gains this week with gains of about 17% and 15%, respectively. In fact, all the major alt coins that I have been following are all up against BTC including (and to pivot towards the traditional markets) the S&P which managed to squeeze out a 1.4% gain in a week where we saw the Fed cut rates once again. As mentioned before in a previous post, negative rates for the US is not an impossibility. Japan and Germany have been running negative rates for over a decade already. So for those who have substantial portions of your wealth in money markets or CDs, it would be ill-advised to keep parking it there. Or as the author of “Rich Dad Poor Dad” puts it, “savers are for losers”.
Three things to know
1. Vault12, backed by Winklevoss Capital and a few other VCs, are offering a new way to secure and store your private keys through the means of your friends. By leveraging a cryptographic technique called Shamir’s Secret Sharing, users can basically partition their private key and distribute it to their friends, aka guardians, to hold onto. Giving more definition to the theme of decentralized.
2. In what was a boring week for BTC, the once largest BTC mining pool owner, Bitmain, created some nice internal drama that unfolded publicly as Jihan Wu basically formed a coup to regain control of the company and ousting former leader Micree Zhan, albeit while Bitmain files for an IPO in the US.
3. Bitmex, one of the largest crypto derivative exchanges, is yet once again in the dog pound by accidently exposing user’s emails through a general user update email sent out by the firm. Woops.
Chart of the Week
As the Death Cross refers to the 50 MA crossing down through the 200 MA, what is it called when the 100 MA crosses down through the 200 MA? Well regardless of what that would be referred to, it is interesting to note that amongst the major alts that I have been following which includes — LTC, ETH, XRP, BNB, XLM , BCH, EOS, ADA , TRX , and DASH — BTC is the only one remaining to have its 100 DSMA still above the 200 DSMA. But it’s approaching real fast. And the last time this happened was in April of 2018 (where we actually saw BTC’s price rise close to 50% during that timeframe only to continue its downtrend until the end of that year…)
So was Xi’s shill the other week also a false breakout?
