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October 25, 2021
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EllioTrades Daily Roundups

October 25, 2021

The Positive News Keep Rolling in – Time to Be Cautious or Greedy?

Oliver Grah
Oct 25, 2021
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Introduction

As soon as you think, there are no new catalysts to support the next bullish leg in the markets, we see fresh stories rolling in: Today, Mastercard went “all-in crypto” and announced to expand its support for various crypto services. If this is not bullish news, I don’t know what is…

Nonetheless, it’s never wise to trade based on news stories, and in today’s update, we want to highlight (again) the urgency to remain level-headed and grounded in the current markets. Too often have we seen that when everyone has their eyes on a certain positive or negative catalyst the markets (aka “smart money” or whales) tend to create a counter-movement in the short term… That’s when you want to jump in, not when everyone is bullish!

Market Watch & Outlook

  • In the last few days, we have witnessed a mild cooldown of Bitcoin and Ethereum, which gave quite a few altcoins room to run, nothing spectacular though. Among the biggest winners in the last 7 days have been RUNE (+62 %), CRV (+52 %), NEAR (also +52 %) – all calls by us – and… meme tokens.

  • Is the strong performance by SAFEMOON, SHIB, and Co. a warning sign, as it has been many times before? It certainly signals that some retail exuberance has reentered the market and in the short term, the risk of shakeouts is rising.

Twitter avatar for @CryptoMichNLMichaël van de Poppe @CryptoMichNL
Floki Inu tram in Amsterdam. Selling all my #crypto as we speak.

October 25th 2021

30 Retweets261 Likes
  • While on higher time frames, Bitcoin and Ethereum are looking solid, there are reasons to be cautious in the short term and at least be mentally prepared for some type of “washout”. Don’t forget that the longer we haven’t seen a red day with double-digit losers across the board, the more likely one will come at some point in the future.

Twitter avatar for @rektcapitalRekt Capital @rektcapital
Looks like #BTC has successfully retested the green area as support $BTC #Crypto #Bitcoin
Image

Rekt Capital @rektcapital

Last week, #BTC Weekly Closed above a historical major resistance area (red) This week, $BTC may be dipping towards the same area but this time to turn it into a support Weekly retest may soon be in progress #Crypto #Bitcoin https://t.co/j8yGm7g5bt

October 25th 2021

82 Retweets723 Likes
Twitter avatar for @rektcapitalRekt Capital @rektcapital
$ETH continues to enjoy consistent price stability at Higher Lows after reclaiming the red area as support So far, so good #Crypto #Ethereum
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Rekt Capital @rektcapital

$ETH continues to hold the red area as support In fact, ETH has been able to print consecutive Higher Lows during this retest over the past few days Continued price stability here will result in a revisit of the ~$4400 level #Crypto #Ethereum https://t.co/vKl0jdU5qI https://t.co/8GKew6fKLW

October 25th 2021

14 Retweets130 Likes
  • Does that mean that you should sell everything and run for the hills now? Far from it, since we’re only talking about exercising some short-term caution. The risk of being left behind once a powerful alt-season kicks off is simply not worth betting everything on another dip – many have experienced this painfully during the first leg of the bull market in spring.

  • Learn to think in scenarios and probabilities, scale into your favorite projects on dips and be mentally prepared for volatility. This way you won’t react emotionally to whatever direction the markets take.

  • Now is also a good moment to reflect on your own mentality and emotions, since it’s so easy to be infected by general euphoria and greed (or fear) as we are seeing now across Crypto Twitter.

Twitter avatar for @toptickcryptoTop Tick Crypto 🇪🇹🦇🔊 @toptickcrypto
Even though "we're still early" has been uttered to the point of banality I do think the lesson that there will always be another opportunity is valid and useful to prevent newcomers from believing they've "missed it" and over extend themselves into blowing up.

October 25th 2021

4 Retweets50 Likes
Twitter avatar for @toptickcryptoTop Tick Crypto 🇪🇹🦇🔊 @toptickcrypto
Missed $BTC ignored $ETH, missed $ETH ignored alts, missed last alt szn ignored defi, missed defi ignored NFTs, missed NFTs ignored whatever everyone's getting rich on now. The cycle continues, and there will ALWAYS be another opportunity...

October 25th 2021

2 Retweets20 Likes
  • On a brighter note, there are undoubtedly also possible positive catalysts in the short term, a strong stock market could be one of them.

Twitter avatar for @CanteringClarkRyan 🐎 Cantering Clark @CanteringClark
Tech earnings week. If the market responds hyper bullish to these updates then just expect that much more from crypto. Don't worry about why that takes place. Focus on the what.

October 25th 2021

9 Retweets131 Likes

CRV’s Remarkable Performance

  • One of the best performers of the last 7 days has been CRV (+ 48%). It’s an impressive move for a “DeFi 1.0” token of which many have had a lackluster performance in the last few months, to say the least.

  • CRV’s performance is another great example of strong bullish divergence between fundamentals and price playing out after many weeks of forewarning. CRV’s tokenomics have significantly improved in recent weeks with the emission rate dropping and a ton of CRV being locked up. Now the price is catching up nicely!

    Twitter avatar for @bigmagicdaoMolly @bigmagicdao
    A Historical tuning point $crv From 2m daily release to deflationary
    dune.xyz/banteg/misc
    Image

    October 25th 2021

    28 Retweets180 Likes
Twitter avatar for @rektcapitalRekt Capital @rektcapital
$CRV / USDT - #crv #curve #curvedao CRV makes history and confirms a breakout from the blue range with its latest Weekly candle close #Crypto
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Rekt Capital @rektcapital

$CRV / USDT - #crv #curve #curvedao On the cusp of making history with its first-ever Weekly Close above the blue range #Crypto https://t.co/rYlUGJwUrE https://t.co/BqP2ERsLTR

October 25th 2021

13 Retweets82 Likes

Mastercard x Crypto: “The Crypto Economy Is about to Expand”

  • Arguably the biggest news of today is Mastercard’s further embracing of crypto. They obviously don’t want to let Visa get too far ahead in this future tech field…

Twitter avatar for @Blockworks_Blockworks @Blockworks_
JUST IN: Mastercard to allow any merchant or bank to offer #Bitcoin and crypto services Meaning that thousands of banks and millions of merchants can soon can soon integrate crypto into their products. - CNBC
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October 25th 2021

283 Retweets799 Likes

Mastercard is preparing to announce that any of the thousands of banks and millions of merchants on its payments network can soon integrate crypto into their products.

That includes bitcoin wallets, credit and debit cards that earn rewards in crypto and enable digital assets to be spent, and loyalty programs where airline or hotel points can be converted into bitcoin.

Regulation Killing Crypto Firms? Think Again

  • Recently, crypto firms (especially centralized lending providers and exchanges) have come under increased regulatory scrutiny particularly in the US. Is it because regulators want to protect legacy finance (certainly not the consumers) or simply because they don’t understand the blockchain world enough?

  • Either way, if you thought a few regulatory scares would stop the blossoming crypto industry, then you don’t understand how the interlinkages between politics, economics, and power work. Crypto has crossed a critical threshold of influence with its $2.7 trillion market cap and backing from massive financial players… There is no way back.

Twitter avatar for @Blockworks_Blockworks @Blockworks_
JUST IN: @BlockFi partners with Neuberger Berman, which manages $437 billion in assets, to offer crypto asset management products Latest by @jacqmelinek
BlockFi to Launch New Product Suite with Private Firm Neuberger Berman - BlockworksThe Neuberger Berman partnership will offer clients asset management of digital assets along with service from investment management experts.blockworks.co

October 25th 2021

28 Retweets131 Likes
Twitter avatar for @BitcoinMagazineBitcoin Magazine @BitcoinMagazine
The third U.S. #Bitcoin ETF will trade today. Buckle up.
Image

October 25th 2021

418 Retweets2,128 Likes
Twitter avatar for @BitcoinMagazineBitcoin Magazine @BitcoinMagazine
I have over a billion dollars in #Bitcoin - Anthony Scaramucci
Image

October 25th 2021

350 Retweets2,685 Likes

Why We Shouldn’t Talk about Hyperinflation – According to “Experts”

  • Jack Dorsey’s Tweet about hyperinflation (if accurate or not is up for debate), has led to some fascinating responses, exposing the world view of many so-called “experts”.

Twitter avatar for @jackjack⚡️ @jack
Hyperinflation is going to change everything. It’s happening.

October 23rd 2021

17,279 Retweets73,143 Likes
  • Imagine if merely talking about hyperinflation could lead to the entire global economy imploding. Is Wired columnist Virginia Heffernan showing a clear lack of understanding of how our economic system works or is it an expression of how fragile this “house of cards” called fiat economy really is? Or maybe both?…

Twitter avatar for @page88Virginia Heffernan @page88
Like “divorce” in a marriage this word @jack tweeted should not be uttered unless you’re trying to bring it into being. No one shd take investment advice from someone who sees himself as making markets. How insanely reckless to tweet this. Immoral. Jack, ban thyself.
Image

October 24th 2021

75 Retweets402 Likes
Twitter avatar for @bitsteinBitstein @bitstein
The same people who tell you not to worry about money printing think that the economy operates through magic spells.

Virginia Heffernan @page88

Like “divorce” in a marriage this word @jack tweeted should not be uttered unless you’re trying to bring it into being. No one shd take investment advice from someone who sees himself as making markets. How insanely reckless to tweet this. Immoral. Jack, ban thyself. https://t.co/fl7CWRXdN8

October 25th 2021

43 Retweets458 Likes
Bild

More Reasons to Opt-out of the Status Quo

  • Recently, we have seen a number of proposed policy actions in the US that have, to say it mildly, caused an outcry. After the $600 surveillance proposal, we have gotten a fresh “idea” presented by Secretary Yellen today.

Twitter avatar for @disclosetvDisclose.tv @disclosetv
NEW - U.S. Treasury Secretary Yellen proposes a tax on unrealized capital gains to finance Biden's "Build Back Better" plans.

October 24th 2021

3,646 Retweets7,128 Likes
Twitter avatar for @NeerajKANeeraj K. Agrawal @NeerajKA
surveilling every bank account and taxing unrealized gains. even if those arent the policies that finally get implemented, floating those ideas sure is making a lot of people mad. maybe a bad idea

October 25th 2021

6 Retweets76 Likes
Twitter avatar for @punk65296529 @punk6529
"would impose an annual tax on unrealized capital gains on liquid assets held by billionaires" Checkmate billionaires. They will never figure out how to work around this genius plan.

October 25th 2021

19 Retweets344 Likes
Twitter avatar for @tbr90Tyler Reynolds @tbr90
@crypto_bobby “It’s not a wealth tax because after you pay it for a decade you’ll own nothing and be happy.”

October 25th 2021

2 Likes

China & Crypto: Not the End of the Story?

  • While China had already banned crypto several times since… 2013, the authoritarian state only started to “really” crackdown on crypto this summer. Crypto mining has been basically eradicated in mainland China since – with no sustainable impact on Bitcoin’s hash rate.

Twitter avatar for @APomplianoPomp 🌪 @APompliano
Bitcoin's hash rate has come roaring back after the China ban forced a 50%+ drop earlier this year. We are likely to see hash rate all-time highs before the end of the year.
Image

October 19th 2021

129 Retweets1,081 Likes
  • What no one would have expected is that China might already be U-turning again soon! Are they just doing it to be able to re-ban crypto again? 😆 Or is it because China has noticed what a grave geopolitical and economic mistake it committed? Either way, game theory seems to be playing out faster than anyone would have anticipated…

Twitter avatar for @zhusuZhu Su 🔺 @zhusu
China seeking public solicitation of comments regarding un-banning crypto mining 🧐
hd.ndrc.gov.cn/yjzx/yjzx_add.…
Image

October 25th 2021

247 Retweets1,400 Likes
Twitter avatar for @JorgeHGaticaJorge H Gatica @JorgeHGatica
Oh! We will need another "China Bitcoin ban" meme.
Image

The Economist @TheEconomist

It is clear that the global centre of bitcoin mining is shifting https://t.co/5n3wbTb6FP

October 24th 2021

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