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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
6
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October 25, 2021

www.elliotrades.xyz

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 @CryptoMichNL
Michaël van de Poppe @CryptoMichNL
Floki Inu tram in Amsterdam. Selling all my #crypto as we speak.
12:51 PM ∙ Oct 25, 2021
261Likes30Retweets
  • 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 @rektcapital
Rekt Capital @rektcapital
Looks like #BTC has successfully retested the green area as support $BTC #Crypto #Bitcoin
Image
Twitter avatar for @rektcapital
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
8:26 AM ∙ Oct 25, 2021
723Likes82Retweets
Twitter avatar for @rektcapital
Rekt 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
Image
Twitter avatar for @rektcapital
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
10:01 AM ∙ Oct 25, 2021
130Likes14Retweets
  • 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 @toptickcrypto
Top 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.
6:04 AM ∙ Oct 25, 2021
50Likes4Retweets
Twitter avatar for @toptickcrypto
Top 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...
6:08 AM ∙ Oct 25, 2021
20Likes2Retweets
  • 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 @CanteringClark
Ryan 🐎 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.
1:38 PM ∙ Oct 25, 2021
131Likes9Retweets

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 @bigmagicdao
    Molly @bigmagicdao
    A Historical tuning point $crv From 2m daily release to deflationary dune.xyz/banteg/misc
    Image
    2:38 AM ∙ Oct 25, 2021
    180Likes28Retweets
Twitter avatar for @rektcapital
Rekt 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
Image
Twitter avatar for @rektcapital
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
8:37 AM ∙ Oct 25, 2021
82Likes13Retweets

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
Image
1:17 PM ∙ Oct 25, 2021
799Likes283Retweets

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
blockworks.coBlockFi 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.
12:39 PM ∙ Oct 25, 2021
131Likes28Retweets
Twitter avatar for @BitcoinMagazine
Bitcoin Magazine @BitcoinMagazine
The third U.S. #Bitcoin ETF will trade today. Buckle up.
Image
10:06 AM ∙ Oct 25, 2021
2,128Likes418Retweets
Twitter avatar for @BitcoinMagazine
Bitcoin Magazine @BitcoinMagazine
I have over a billion dollars in #Bitcoin - Anthony Scaramucci
Image
10:53 AM ∙ Oct 25, 2021
2,685Likes350Retweets

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 @jack
jack⚡️ @jack
Hyperinflation is going to change everything. It’s happening.
2:15 AM ∙ Oct 23, 2021
73,143Likes17,279Retweets
  • 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 @page88
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.
Image
9:15 PM ∙ Oct 24, 2021
402Likes75Retweets
Twitter avatar for @bitstein
Bitstein @bitstein
The same people who tell you not to worry about money printing think that the economy operates through magic spells.
Twitter avatar for @page88
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
4:52 AM ∙ Oct 25, 2021
458Likes43Retweets
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 @disclosetv
Disclose.tv @disclosetv
NEW - U.S. Treasury Secretary Yellen proposes a tax on unrealized capital gains to finance Biden's "Build Back Better" plans.
11:53 PM ∙ Oct 24, 2021
7,128Likes3,646Retweets
Twitter avatar for @NeerajKA
Neeraj 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
2:36 PM ∙ Oct 25, 2021
76Likes6Retweets
Twitter avatar for @punk6529
6529 @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.
3:41 AM ∙ Oct 25, 2021
344Likes19Retweets
Twitter avatar for @tbr90
Tyler 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.”
8:14 AM ∙ Oct 25, 2021

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 @APompliano
Pomp 🌪 @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
1:02 PM ∙ Oct 19, 2021
1,081Likes129Retweets
  • 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 @zhusu
Zhu Su 🔺 @zhusu
China seeking public solicitation of comments regarding un-banning crypto mining 🧐 hd.ndrc.gov.cn/yjzx/yjzx_add.…
Image
6:01 AM ∙ Oct 25, 2021
1,400Likes247Retweets
Twitter avatar for @JorgeHGatica
Jorge H Gatica @JorgeHGatica
Oh! We will need another "China Bitcoin ban" meme.
Image
Twitter avatar for @TheEconomist
The Economist @TheEconomist
It is clear that the global centre of bitcoin mining is shifting https://t.co/5n3wbTb6FP
6:31 PM ∙ Oct 24, 2021
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October 25, 2021

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