This ETH Breakout Will Start The Best Altcoin Super Cycle
We will see an absolute groundswell in altcoins and i believe in nft as well though it very well might be the case that nfts get the air sucked out of the room just temporarily as theyre all priced in each, but well get to that. In just a few minutes, what we need to understand here is that this is wildly bullish for the crypto markets right now and that the crypto markets almost didnt bat, an eye when we had one of the most important setbacks here with trading being suspended across china. Here, starting with evergrand, but literally all of these suspended stocks because they were trading at such aggressive losses that the chinese stock market suspended trading to prevent a cascading collapse. So while this was happening, we saw crypto barely bat an eye, and meanwhile we see ethereum in an absolute insanely bullish, breakout pattern. This is what dreams are made of, as we are entering into q4 of 2021, the year after the having, which is typically the most bullish year for crypto and the most bullish quarter within that year. If youre here, i believe, genuinely youre gon na make it, but there are tons of risks involved so make sure youre doing your own homework and, of course, remembering this isnt financial advice. You got to make your own financial decisions im just here to relay the news. Im elio trades and if you love making ridiculous gains here in crypto, then all you got to do is subscribe and put that bell notification on as always, each and every week, each and every day we give you the absolute best news in the industry and help You get ahead, look around corners and make ridiculous gains in the market, and, if you like that, all you have to do is subscribe, pretty easy and its free with that said, lets dive in so before we get to ethereum and the altcoin market, which is looking Absolutely crazy: we need to talk here about a fractal on the bitcoin difficulty ribbon chart.
This is a very interesting chart that, as you can see, uh contracts during bearish periods and then expands during bullish periods. This is a way to show how the difficulty of bitcoin mining impacts and sort of moves, alongside with price. Now, what we just saw was a fractal meaning a shape, a recurring pattern, and when we talk about fractals, we talk about the same type of bullish patterns. Weve seen in the past theyre kind of a way to see if the past is going to repeat itself to some degree. Now we have seen a fractal repeating which was the 2018 capitulation fractal, which is what we saw at the end of 2018 before the massively bullish 2019. What many people considered a bear market retracement, but nonetheless, we saw bitcoin go from about 3 000 bucks up to over 14 000, and that was a very bullish period. Indeed. Nonetheless, we just saw a very similar big capitulation on the bitcoin mining difficulty, which then got bought back up and mining difficulties now resuming its uptrend, which is a bullish, fundamental factor showing that the bitcoin network is once again becoming more and more secure. So what are we gon na say? And by the way, take this with a big grain of salt, because this is an underlying metric, a bullish pattern and a fractal its a lot, its a lot of layers of extrapolation. But nonetheless, it could mean that we are in for another 2019, like bullish trend here, where we go from about 3 000 bucks up to fourteen thousand.
Obviously rough math. There is about a four and a half x, or something like that. So if we do that from where we are right now, that would put us at about two hundred thousand a little bit above there, which is about the top end of where i see this going uh in a better case scenario, i think after 100 000, its Very good and you should be focusing on taking some profits just in case we go bare, of course, were also waiting for that supply shock. As you can see, based on this chart here, uh posted by a good friend of the channel will clemente hes saying the long term holder supply shock has reached new. All time highs literally look at this. This is that chart that green chart and we see that as this green line works its way up here towards these high levels. What we know is that the long term holders have taken more and more supply off the market and weve now seen this green line. Peak to new all time highs higher than it was in 2019 higher than it was in 2015. The strong handed holders are stronger handed than they have ever been before, and that is extremely extremely good, and that generally means were at a place where we can have whats called a supply shock where, as the price starts, to go up and new fomo new retail Buyers come in well guess what those long term holders are holding more and more of the supply, and you get a supply shock where all of a sudden the bidding starts going way up because theres, just not enough free bitcoin on the market to satisfy the demand Supply shock thats what that means.
We also see several points of negative and positive catalysts on the horizon. While timing is hard its important to think about their potential short versus long term implications so be prepared for a roller coaster, because on chain looks super bullish. We know historically, it looks super bullish. All of these fundamental factors look super bullish, but then we also have this question here. Imagine what happens if the biden, administration, stable coin recommendations, tank the market and then sec approves a bitcoin etf. These are both positive and negative. Competing external catalysts, and so of course, you know how i feel about external catalysts. They are always temporary as the bitcoin network and the growth of this particular movement seems to be immune to any particular governments decisions or any particular groups decisions. That said, temporarily, its very likely that we see some shakeout before the breakout. I keep saying this because if there is a bitcoin etf approval, the big green flag that that would be on the market would easily, in my opinion, double the bitcoin price, even if its just a bitcoin futures, etf, thats, an easy doubling of bitcoins price and meanwhile Its going to send absolutely everything in the market to probably all time highs and beyond, so keep that in mind. But if we do get some crazy stablecoin recommendations here, it could send some fud around the market. Again. Whats clear is that this administration and the people in power right now seem to have a very limited understanding about crypto and an aggressive stance towards regulation.
I do believe they will come to regret. This crypto is the new cradle of innovation, and so the countries that embrace it will far outpace those who do not. This will undoubtedly come to be known in the coming years, but until then, until then we will have a roller coaster, so strap in. So i wanted to reiterate this because i do believe that this next quarter will be extremely extremely profitable, but its important to have a profit taking strategy here going in to q4. If you dont, have your strategy set youll just write it emotionally youll write it up. Youll write it down and youll probably be a little disappointed with what you have left. When all is said and done, ive said this and ive pounded the table about taking profits regularly, but nonetheless every time theres a bear trend. I get the reply guys. I get the people screaming about how i made a video about a coin and its no longer worth as much as it was well guess what thats gon na happen again, because my goal is to expose the opportunities in the market. But i cant tell you exactly: when the prices are going to go up or down. I can just show you my strategies its up to you to manage your stacks and be responsible so on the topic of responsibility. Lets dive in here to this amazing thread by ari paul. He says im medium term very bullish, but will fairly soon be in profit, taking mode, not sure what medium term means.
My guess is. We have one more parabolic run this bull cycle. Dont know if thats three month or 18 month, timeline ill clarify im trading a full market cycle. My approach is to trade around a very long position for the first, two thirds of the bull run then gradually trade around a less and less long court position when were in later parabolic stages. This is exactly what ive been talking about, but fairly soon. I expect to view any new buys as momentum trades with stops worth, noting that the last parabolic stages often give the sharpest, rallies and highest returns, but those also pose the most risk sharpest reversals, in my opinion, its 1998 in cryptocurrency. What does that mean were about to have the great stock market bubble, the dot com bubble, and i couldnt agree more because were at about a two trillion dollar market cap. If we go 5x from here, which i think is super likely, what do we get? A 10 trillion dollar market cap exactly the same as the dot com bubble to the t, its actually uncanny. There are great momentum, traders that dont even start buying until the later stages of a bull run, but to do that, you need to be very good at identifying tops and going to cash im, not good at that. So i dont do that. I just have very set uh prescribed moments: im gon na take profits. Just like i told you im gon na ride this nft wave yeah its been a nuts nft wave.
Craziest gains are coming out of nfts im, also gon na get liquid at the end of october early november. Ride the altcoin season wave and take heavy profits at the end of november early december ill make it more clear in a second to use 2017. As an analogy, a lot of people got in at 8k or 12k or sadly 19k and then thought they would buy the dip and so bought it 15k and 8k on the way down, ending up losing 70 plus percent or having to wait three years just to Break even this cycle wont match 2017, exactly maybe itll be totally different. Maybe btc or eth will go up in a straight line forever. I dont have a crystal ball, but ill be betting, that this looks very roughly almost like every crypto bull run and tech run in history, and those are some wise words. We also before we dive into our wrap up here about what this all means. I want to explain that we have huge hypocrisy on regulation after the panama papers in 2016. We now get a new scandal, the pandora papers, and while the extent of this recent leak is immense, it basically shows that nothing has changed. For the last five years. Rich people continue to hide their money in offshore secret accounts, and regulators do an excellent job at just looking away. But of course, crypto needs to be heavily regulated to protect consumers. But the real question is: is it the legacy financial system that needs to be heavily regulated to protect consumers? This is the point.
Is that its funny, how regulators and legislators couldnt care less about offshore tax avoidance, but are willing to crack down on an entire industry where younger generation is making their own wealth just to get their hands on alleged tax avoidance? This is the great charade of the crypto regulation saga is that they are branding this as tax avoidance when, in reality, theyre doing nothing to stop the real tax avoidance. And what do we have is that we have a younger generation trying to be stripped of their. Only chance at wealth, this is population control, so this is where we really need to make our voices heard. We need to make a stand for self custody and self governance of crypto, and that will be the opportunity to truly achieve equality to truly achieve financial freedom. Because what were seeing here is a double standard where a certain group of people are getting to freely freely. Hide wealth while trying to criminalize others who are not trying to do so. This is very much so the double standard, because the young people are the ones getting ahead. I actually had this retweet here where i retweeted rao pao, who i have a great respect for. Just to be clear, but ral has this thread here, where he sort of talks about how its impossible to get into nfts, because hes not in discord, hes, not engaging with these communities and he feels super left behind. Meanwhile, this is a man.
Whos worked in big banks: whos a financial insider whos been at the forefront of crypto, but has always had that edge. Hes always had that insider information and hes realizing. He is not in these communities. He is not part of the next wave and he knows hes left out guess what financial insider realizing hes got no edge in nft. This is the great restructuring where even someone like rao powell, whos crypto friendly doesnt get it because the actual cookies, the actual rewards, are going to those who are savvy, who are aggressive, who are hard working who are culturally relevant thats. Why neo tokyo citizens were able to achieve their identities thats? Why the people in the cyber congress are so successful? Thats? Why these discord? Groups and communities are creating generational wealth because these people are actually culturally relevant and on the bleeding edge of culture? Community building interpersonal communication, and just because youre sitting on a pile of money just because youre, crypto, friendly or understanding about crypto doesnt mean youre actually going to succeed. This is actually it where the young, hungry and intelligent who are with it will become the new elite. We must fight for our rights and protect our opportunity for this movement to thrive and flourish, because nft and crypto. These are the things that are going to free an entire generation from the shackles of the past. But only only if we keep the ethos and keep the freedoms that have allowed it to get to this point.
So with that said, with eth, looking like its ready to break out from a cup and handle pattern, one of the best performing chart patterns known to man. Well guess what that means. Alt season is loading. Just like i told you, i was expecting for big caps to start moving towards later in october. Im still very much in that camp ive also been riding this nft wave, making crazy gains were gon na have more nft content. For you make sure you smash that like button and comment below – and let me know what nfts you want me to cover, as always, i feel like. I have some juice for you, so im gon na give you the things that i think have value. All of my nft picks im a little even worried as to how accurate my nft picks have been recently. It makes me even more dedicated to finding the best projects, for you so make sure that youre, following with that bell notification on, because the people who have been following my nft journey have been outsized. Profits based on the litany of messages. Ive been getting each and every day telling me about life, changing gains that my community is making here, and it gives me a tremendous sense of pride with that said. My strategy remains the same writing nfts until late in october, getting liquid riding the alt season and then just like ari paul said having a profit taking strategy just in case we get a massive bubble blow off top like you know, every other bull run in past With that said, if you got some value out of this smash that like button as always, my name is eliot trades.
You can find me on twitter at elio trades, making a ton of sort of more spontaneous content. There im sure the elio trades followers over there have gotten into some opportunities that i havent had time to cover here on the channel again.