Weekly Wrap Up | 10/18/21 - 10/23/21
By Matthew BrienenNews Flash
*Friday 10/15/21: * The rumors of a Bitcoin Futures ETF being approved have finally come to fruition after years of waiting. The SEC has received hundreds of applications since 2013 and denied all of them with haste until 2018. After the stock market closed Gary Gensler, Chairman of the SEC, gave the greenlight to ProShares to trade as a BTC Futures ETF on the Chicago Mercantile Exchange with the ticker $BITO. There is still a hoard of BTC Futures applications that are awaiting decision.
*Wednesday 10/19/21: * Coinbase ($COIN) announced a massive partnership with the National Basketball Association for the 2021-2022 season. The exact terms of this deal were not specified, but Coinbase certainly won't take a small bite out of the $10B annual revenue the NBA brings in. This partnership extends over all sectors including NBA, Women’s National Basketball Association, NBA G League, NBA 2K League.
*Monday 10/18/21: *The Commodities Futures Trading Commissionslapped Tether (USDT) with a civil monetary penalty of $41 million and a cease and desist. CFTC says that while Tether claimed all USDT tokens were 100% backed with USD, often they did not hold the dollars in cash but in financial instruments. Although Tether had profits disgorged, the CFTC classified USDT as a commodity, harboring its status from the SEC's clutches.Later on in the day, Grayscale Bitcoin Trust ($GBTC), one of largest crypto investment funds for accredited investors, filed to convert their fund into a Spot ETF. The approval of a Spot ETF application would have more impact on the market long term, as it gives institutions more direct exposure to Bitcoin instead of the fees and hoops associated with a Futures ETF.
Bitcoin Technical Recap
We discussed on Monday's stream the strong bullish trendline that Bitcoin was adhering to as it sat below the all-time high. There were lots of long orders put into the markets in anticipation of the BTC ETF being approved. Bitcoin finally broke above its all-time high of $64,000, setting a new ATH $1 shy of $70,000.On yesterday’s stream 10.22, Dan Habib, of MBS Highway, presented his case for unloading 60-70% of his Bitcoin position in the $72,000-$80,000 region and looking to rotate those profits into the altcoin market. Dan presented the on-chain metrics & highlighted how long-term holders have just barely begun selling as they’re in from 2020 lows & there is gas left in the tank for BTC. He also showcased a Dow Jones chart in juxtaposition with BTC unveiling some uncanny similarities using Fibonacci extensions suggesting we’re nearing a top. Checkout Dan's full BTC exit presentation here.We saw positive funding rates for the BTC derivatives market spike to the highest level, just under 0.05%, in 6 months on Wednesday as BTC screamed towards $67k. The natural response to this volume of a spike is to see some selling pressure & corrective structures come into play to balance the market. We’re looking for minor support to hold at $59-60K, however a test of the previous 78.6% fib retracement at $57,000 would also be healthy & set a new lower high in the macro uptrend.
Ethereum Technical Recap
Throughout this last week on both our streams & the Ethereum technical analysis section updates we discussed the inverse head & shoulder pattern that was completing & providing a neckline just under $4,000. It was suggested that a retest of the all-time high around $4,380 could be struck before coming back to test the neckline of the broken inverse head & shoulder pattern.Price has now retested both the ascending trendline & the $4k zone, rallying sharply. The measured move from this target should complete towards the $5,100 region if Bitcoin is to give up volume to Ethereum. Secondary targets would lie in the $6,030 zone.
Project Breakdowns
Brian Decker brought some deep dives to the show this week with Avalanche (AVAX), Polkadot (DOT) & the parachain auctions for Kusama (KSM).The compressed breakdown for Avalanche is located in the learning center under Daily Uploads as "[An Overview of Avalanche](https:** //dashboard.cryptocharged.com/libraries/an-overlook-of-avalanche/)". Brian highlights the key features of AVAX including a 3- second settlement time & a unique finality consensus model.We also took a look at the behemoth partners of AVAX including Sushi Swap (SUSHI) & AAVE, as well as how to earn 9.5% on your Avalanche coins on Tuesday's Stream.After Brian covered some core fundamentals on Chainlink (LINK) & Polygon (MATIC), Matt provided some entries for the pair, with LINK rocketing as high as 23% for the week off the $25 call. The MATIC entry from the $1.40-$1.50 region is still on the table with a min 2x target. Watch the full stream[here](https:** //dashboard.cryptocharged.com/updates/bitcoin-exit-plan-10x-altcoin-picks-chainlink-polygon-overview/).On Thursday's stream, Brian dove into parachain auctions explaining how the timing & balance of funding works to catapult the best projects within the ecosytem. The highlight for this is located in the learning center under Daily Uploads as "Polkadot & Kusama Parachain Auctions Explained"Finally, Matt & Brian addressed Doge & meme coins. Although it's a fun gamble that might pan out, there is a plethora of projects with greater utility, partnerships & ROI than meme coins. Check out the full[Doge Coin](https:** //dashboard.cryptocharged.com/libraries/what-about-dogecoin/)** segment to understand the technical case for a smaller second leg in DOGE.
