What Worked
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Havven (HAV)- This stable coin is up 59% this week as rumors about tether spread.
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0x (ZRX)- 0x has been added to Coinbase and is up over 20% in the last 24 hours.
Upcoming Catalysts
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ETH- Ethereum’s Constantinople hard-fork will be conducted on October 14th. This will make the network more efficient and reduce the mining reward from 3 ETH per block to 1.
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ZRX- Coinbase Pro has listed 0x, however, only deposits are available for now. Trading will start sometime in the next 2 days.
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CBOE Futures Expiration- October 17th is the expiration date of CBOE futures contracts. Typically, Bitcoin see’s volatility on or around their expiration dates.
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Bitfinex and Tether problems- Bitfinex has suspended all fiat deposits for one week. There have been rumors about banking issues with speculation that they may be insolvent.
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Coinbase’s Index Fund – Coinbase has announced that the index fund they launched earlier this year will be shutting down. They have instead decided to focus on retail investors through a new product they are offering called Coinbase Bundle.
BTC Market Activity
We saw a crypto market sell-off this week as Bitcoin’s price broke down after forming an equilibrium pattern over the last month. Fortunately, long-term support has held at $6000 for now. Complications with Bitfinex have likely left investors shaken as rumors of banking problems and insolvency spread. The $5800-$6100 range has been tested many times this year as the bear market persists. Each time this support zone is tested it becomes weaker until price eventually breaks below it. While this has yet to happen for Bitcoin, it is still certainly possible if there is significant follow through from bears. Until Bitcoin breaks below this level, we are staying engaged and waiting for the market to tell us to exit.
We are staying optimistic with positive news coming up in November from The Intercontinental Exchange’s Bakkt project. This will further spread cryptocurrency adoption as Starbucks, Boston Consulting Group and Microsoft jump onboard.
Bitcoin’s fundamentals are stronger than they have ever been with adoption and institutional pipelines continuing to develop. Regardless of Bitcoin’s price action this year, we are confident the future is bright for cryptocurrencies overall.
Technical Indicators
The crypto market has had an interesting week as many altcoins saw gains dry up when Bitcoin made its move lower. Overall, many alts still have good set-ups with support holding for many projects. If Bitcoin makes another move lower, we could see a market wide sell off pushing altcoins below support levels and back into a free fall.
DCR- Decred moved this week from $37 to $46 but retraced the entire move after Bitcoin sold off. However, it continues to make higher lows keeping its trend intact. This is the same situation as ICX and AION mentioned last week. These set-ups remain valid until support fails which would likely be caused by a move to the down side in Bitcoin.
SUB – Substratum is one of many lower cap altcoins that have fully retraced their moves in 2017 relative to both BTC and USD prices. This retrace means that accumulation can begin again with the start of a new market cycle after Bitcoins lowest point has been confirmed.
#zrx #coinbase #HAV #altcoins
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected]
