Bitcoin Gold. BlockMason Credit Protocol. DigixDAO. I suggested these trades as part of a Labor Day Sale (pun) based on their underperformance against the market during the most recent bull move. Those cryptocurries outperformed the entire market during the most recent down move – mitigating paper losses during a stinging two-day long -20% drop.

On September 3rd, I posted It’s the Labor Day Crypto Sale! BTG, DGD, OMG and BCP. The entire purpose of those trade ideas was based on the underperformance they have had compared to the entire market. Ideally, my approach was to tag the laggards in the market. In other words, get into cryptocurrencies that have not yet had their big run. But these three cryptos actually performed an unintended good dead – which lead me to an observation I failed to see.

There is something in common with the charts of Bitcoin Gold, Block Mason Credit Protocol, DigixDAO and to some degree, OMG. Prior to the entire downside move we experience, these coins were already at or near trading either all-time lows or yearly lows. They also had failed to experience a rise in value during most recent up-move seen in the rest of the crypto market. At one point or another, these four coins were up over 12% against Bitcoin. At their worst, they performed around 2% better. That’s significant. The volume was what was very interesting: it shot up. Not a little. A TON.

DGDBTC Volume

Highest volume bar since June 4th, second highest since May 11th.

 

 

 

 

 

 

 

BTGBTC Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

The highest volume bar since April.

 

This volume is evidence of support. For whatever reason(s), while the broad market was selling off in a very dramatic fashion, there were desires to keep these coins from falling lower. Why? I don’t think it has anything to do with them being of particular value – but I do think that anything behaving like this will behave like this again and has in the past. I did a little research: coins that were flat or making new lows during a broader market rise stayed the same or saw their prices increase when the broader market sold off. This may be a particularly positive and unknown hedging technique – one that might even form profit. More research and live analysis is needed, but I would encourage everyone to check these phenomena out yourselves.