CORRELATED Declines Across Cryptos Initially led by ETHUSD

Unfortunately, for now there are strong bearish market sentiments for Bitcoin that marked a low at 5858 in Asian session, which is indirectly from the contagion and for some a much delayed US SEC approval for ETFs. As CME Bitcoin Futures are much too expensive for retail speculative investors & traders to get into.

The correlated declines across Cryptos, for  now is led by ETHUSD which just made a 2018 new low $268.83 as of this writing. A 9 month low equivalent to more than an 80% decline from its peak price at $1424.00 as of January 13, 2018. Check this Fibonacci Retracement Applied to measure its price from where ETHUSD came from before its rally.

FIBONACCI Retracement Applied

ETHUSD as of Aug 14, 2018

BTCUSD as of Aug 14, 2018

Apparently technical tools are lagging indicators that would not be as effective since the market is currently driven by bearish momentum sentiments. This will also lead to a spill over negative effects for ICOs backed by Ethereum on certain blockchain projects. Likewise, there has been an increase in failed ICOs as more investors are drifting away from offerings and cashing out as prices continues to decline.

TSOT- Brief Structure of a Digital Currency Portfolio

Preparing for the Next Turn!

With Grayscale Investment Trust Fund recent February launch of its 'Diversified Digital Large Cap Fund' (DLCF), accredited investors would be able to gain access to get a deeper exposure to its weighted components in a more professional manner of investment criteria.

DIGITAL ASSET HOLDING Price / Share as of June 22, 2018 is at
$5.83 Net Day change of -6.87% Source Grayscale 

Here are the components market cap weighted percentage distribution in the fund where their Rebalancing schedule are on a Quarterly basis. This is based as of May 31, 2018

#BITCOIN - BTC - 55.2%  #ETHER   - ETH - 24.2% 

#RIPPLE  - XRP - 10.4%   #BITCASH - BCH -  7.4%

#LITECOIN- LTC -  2.9%

These components and their respective weightings would be quite useful in structuring our exposure to each or a selected group of Digital asset class both in CASH & FUTURES market. A strategic combination of asset class would be determined by monitoring 'Price Action' on the Bitcoin market as it carries a bigger weight / percentage in the basket fund of digital currency. However, the initial structure would concentrate more towards the DLCF and pre-determined individual funds including our 1st GBTC based from our reference information below. 

The approach is similar to the overall components of the original USD Index (DXY), with relative comparison to JP Morgan Asian USD Index (ADXY) and Bloomberg USD Index (BBDXY). This may seem to be a bit complex for others not accustomed to the strategies, as it involves a certain degree of process which MegaTrade101 has timelessly applied with Spot FX, Futures, Options and ETFs markets, which have been quite effective so far since then by using CIPHER3 Analysis Others may view the complexity of the process, but this is where it all started from and eventually turned into our core strength in trading.

With the recent 2017 launch of Bitcoin Futures by both the CBOE and CME, we are now gearing up to speed on combining these methods in a pre-selected venue. Now that the top digital currency assets are tradeable in a variety of funds it would be time to re-apply its viability. Their respective price and percentage differentials have always been our key asset in determining their imbalances similar to the foreign exchange market. 

For now, we would simply share this brief information, as we structure the portfolio based on this premise to start with. As we all know that the Digital Currency market have been experiencing a remarkable decline and the current pressures are yet to be ironed out in the market. 

Reference Information:

BTCUSD Alternative Trade Strategy

Digital Currency Finds Relative VALUE as an Alternative Investment

After the Fact: Volumes Surge Pushes Bitcoin above 8000 

#GBTC Marks Above 1000k as of Nov 25, 2017

While #BITCOIN pauses for a breather between 8354 and 8000 levels #ETHUSD and #BCHUSD are trailing in the same manner and direction with the classic leader.

As mentioned, that a 'TUG of WAR' has emerged from the surging crypto currency market that have taken notice on Wall Street big wigs. Especially so when the soon to open Bitcoin futures takes into center stage led by the #CME. Its going to be a sight to see who among these players on Wall street shines in the opening bell. While the community may just be on the initial sideline with a wait / see attitude. 

May not have gotten the full run on the classic but sure enough the GBTC has managed to outperform our earlier expectation of an exceptional market rally just well within one year.


Price Update: GBTC Above 1200 as of Nov 28, 2017

Reference info: GBTC  market & trade position