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October 18, 2021

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EllioTrades Daily Roundups

October 18, 2021

Bitcoin Closes Its Highest Weekly Candle – and Takes a Breather

Oliver Grah
Oct 18, 2021
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October 18, 2021

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Introduction

Despite the weekend’s usual “scam price action” and the volatile day today, Bitcoin achieved something very important: It closed its highest weekly candle EVER! This is a very positive sign from a macro perspective, signaling that after a multi-month correction, BTC is back strong and ready for new price discovery…

Twitter avatar for @CryptoParadyme
Dyme @CryptoParadyme
HIGHEST WEEKLY CLOSE EVER
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12:12 AM ∙ Oct 18, 2021
260Likes29Retweets

Market Outlook

  • Are we seeing some “sell the news” action today after the anticipation of the ETF approval led to an impressive run-up in BTC’s price? That’s possible but today’s weaker price action is also in line with general risk-off sentiment in global equity markets.

It is a risk off day as global inflation concerns are back.

Twitter avatar for @jnordvig
Jens Nordvig @jnordvig
Bitcoin ETF launch (now set for Tuesday on NYSE) does not seem to generate much incremental BTC gain this morning. Had it been talked about too much already over the past week?
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11:14 AM ∙ Oct 18, 2021
10Likes1Retweet
Twitter avatar for @zhusu
Zhu Su 🔺 @zhusu
Buy the rumor buy the news buy the dip light the fuse $BTC #Bitcoin
7:39 AM ∙ Oct 18, 2021
3,212Likes240Retweets
  • No one knows what the short-term price action holds – else, every leverage trader would “make it” easily. However, the current cool-down action after BTC’s impressive move-up is looking healthy for now.

Twitter avatar for @rektcapital
Rekt Capital @rektcapital
This is what a successful #BTC retest looks like So far, so good $BTC #Crypto #Bitcoin
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Twitter avatar for @rektcapital
Rekt Capital @rektcapital
#BTC has enjoyed its highest Weekly Close ever That said, any dip into the red area would most likely be a retest attempt to flip an old resistance into a new area of support $BTC #Crypto #Bitcoin https://t.co/Smuazow5ZW
2:17 PM ∙ Oct 18, 2021
61Likes8Retweets
Twitter avatar for @WClementeIII
Will Clemente @WClementeIII
People literally get angry when I call for a short term down move to flush leverage. Little do they know these shakeouts are healthy for continuation higher. Talk about emotional investing.
9:26 PM ∙ Oct 17, 2021
4,898Likes217Retweets
  • We might sound like a broken record but it’s important to highlight that on-chain metrics, which tend to be a good indicator for mid-term price action, are pointing towards more bullishness over the coming weeks and months. First, BTC has to overcome its old all-time high though, which could take more than one attempt…

Twitter avatar for @caprioleio
Charles Edwards @caprioleio
Historically every time MVRV z-score reclaimed 3.0, #Bitcoin went on a parabolic price run for the next 1-2 months. Bitcoin just reclaimed 3.0
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9:36 AM ∙ Oct 18, 2021
955Likes192Retweets

Bitcoin ETF Starts Trading Tomorrow

  • It has been quite the ride: After years of waiting and lots of speculations in the past months, we finally got a Bitcoin ETF greenlighted by the SEC and ready to start trading tomorrow! We have already outlined the drawbacks of Bitcoin Futures ETFs, nonetheless, the symbolic impact of the approval can’t be overstated!

Twitter avatar for @Blockworks_
Blockworks @Blockworks_
NEW: ProShares #Bitcoin Futures ETF to start trading tomorrow on the New York Stock Exchange - New York Times
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11:42 AM ∙ Oct 18, 2021
979Likes278Retweets
  • Here is a reminder for those who are considering investing in the new Bitcoin Futures ETF – and why the SEC is actually not protecting but hurting retail investors:

Twitter avatar for @jeffjohnroberts
Jeff Roberts @jeffjohnroberts
Do you know how contango and backwardation work? If not, stay the hell away from the new Bitcoin ETF. In a misguided bid to "protect" small investors, SEC approved an exotic derivatives product rather than a basic ETF that tracks the price of Bitcoin
decrypt.coBitcoin’s First ETF: Winners and Losers - DecryptThe SEC’s approval of a Bitcoin futures ETF is good news—for some much more than others.
2:13 PM ∙ Oct 18, 2021
65Likes19Retweets
  • All in all, the Bitcoin Futures ETF is only the first crucial step towards a physically-backed Bitcoin ETF, which several high-hitting players in the industry are now working towards…

Twitter avatar for @Blockworks_
Blockworks @Blockworks_
JUST IN: @Grayscale confirms plans to convert its Bitcoin Fund into a #Bitcoin ETF
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1:24 PM ∙ Oct 18, 2021
84Likes25Retweets
  • Major international brokerage platforms like Interactive Brokers enabling cryptocurrency trading and investing is also a critical step in bringing financial advisors and mainstream investors onto the crypto bandwagon.

Twitter avatar for @APompliano
Pomp 🌪 @APompliano
BREAKING: Interactive Brokers just announced they will empower Registered Investment Advisors across the United States to invest in bitcoin and cryptocurrencies. This means hundreds of billions of dollars can now enter the market more easily.
2:42 PM ∙ Oct 18, 2021
1,036Likes210Retweets

Crypto Adoption Is on Track – but Still Earlier Than Many Think

  • When trying to predict bull and bear market cycles, there are several factors to consider: Price and data models (such as Plan B’s Stock-to-Flow model), sentiment (e.g. Fear & Greed, leverage, open interest), external catalysts (such as regulation and macro developments) and – very importantly – adoption curves (aka network effects), which are the ultimate fundamental driver of crypto prices (even though prices might disconnect at times).

  • In a recent (bullish) report, Morgan Stanley compared the user growth of the cryptocurrency space with that of the Internet in the 1990s, and they found striking parallels: According to their timeline, crypto user growth is currently at the level the Internet achieved around 1997 – so still incredibly early.

Twitter avatar for @krugermacro
Alex Krüger @krugermacro
Striking similarities between Crypto adoption and internet user growth of the early 1990s - Morgan Stanley
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8:19 AM ∙ Oct 18, 2021
76Likes14Retweets
  • On a different but related note, MacroScope highlighted the similarities between today’s crypto market and the tech boom in the 90s. Similarly to Goldman Sachs, he compares the current stage of the crypto space with the early-to-mid (and not the late) stages of the tech cycle.

In terms of institutional interest and involvement, feels very similar to early stage of tech/internet despite current ATH price.

Twitter avatar for @MacroScope17
MacroScope @MacroScope17
As a sell-side trader in the 90s, I had a front row seat to institutional interest in tech/internet sector. Struck by how similar right now feels to 1995-97 era. Despite BTC at ATH, this is not 1999...at least based on current stage of institutional involvement and sentiment.
10:12 PM ∙ Oct 17, 2021
360Likes34Retweets
  • Both these comparisons are looking at the long-term technology S-curve of the crypto space. Of course, bull and bear cycles are a beast of their own, since prices can over- and undershoot the overall growth trajectory… It’s good to know, however, that in the grand scheme of things, the crypto space still has a lot of room to grow – even though this will entail more than one bull and bear market cycle.

Big Tech Is Going All-in on the Metaverse

  • The Metaverse isn’t just the hottest buzzword in NFT land, it’s also a concept that big tech and legacy gaming companies such as Facebook, Microsoft, Roblox, and Epic are going after. That Facebook plans to hire 10,000 people (in Europe alone) to achieve its mission underscores how big the company’s Metaverse ambitions are.

Source: CNBC
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October 18, 2021

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