Happy Bitcoin Whitepaper Day

30.10.22 11:25 PM By Stormrake

The world irrevocably changed 14 years ago today with the publication of the Bitcoin Whitepaper. A revolution that spans finance, economics, politics has created the purest form of money the world has ever seen.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

The Birth of Bitcoin

What a glorious day for us to reflect on the invention of Bitcoin. Over the last 14 years a lot has happened in the world of Bitcoin and the greater universe of digital assets, yet the impact and revolution of true money has only just begun.

Erik Voorhees, founder and CEO of ShapeShift on a debate with exchange kingpin, Sam Bankman-Fried eloquently stated that the Bitcoin provides separation of money and state. This revolution in thinking and freedom is akin to the separation of church and state. No longer will the people be subject to currency manipulation, artificial inflation and egregious government debt loads as Bitcoin provides emancipation from a legacy system that has truly outrun its course and utility.

The next 14 years will provide volatility, countless ideas, continuous development and an opportunity for monetary freedom but for now, let's enjoy Bitcoin Whitepaper Day and prepare for a huge week ahead in macro land.

Macro outlook

We have a huge week in macro land to navigate as we have not one, not two but three key interest decisions to digest. First cab off the rank will be the RBA announcement, followed by the king of all interest rate decisions the FOMC meeting and closed out with the BoE decision.

Expectations are between 50 - 75 bps to come out of each meeting, usually this would crush risk assets especially crypto and equities. However, we have had an interesting development occur over the last few weeks, as we have seen giant tech firms such as Amazon and Meta get absolutely destroyed by poor earnings yet Bitcoin stands strong. This strength in Bitcoin and the wider crypto space despite tech stocks getting a proper beatdown may indicate some of the Wall Street tourists have already left.

To confirm this divergence, we will be watching the price action react to the interest rate announcements, if equities and tech stocks get sold off and Bitcoin holds up, it may be one of the clearest buy signals crypto has had in quite some time.

BTC/USD key levels

Interactive chart: click on image for higher resolution

Bitcoin currently sits on our pivotal key level of $20,554 USD and will prove to be a make or break area this week. If we hold above this level, we can easily retest $21,761 prior to taking a pause, if we close above $21,761 on the daily chart, watch for a sharp move to $22,794.

To the downside, if we close below $20,554 on the daily chart, we'll be anticipating a retest of our previous magnet area of $19,560. Losing $19,560 can have us spiking lower towards the local low of $18,161 before we find support.

ETH/USD key levels

Ethereum continues to outperform and its market structure looks incredibly healthy. Due to its recent strong outperformance, it could possibly trade in a range between $1,472 USD and $1,664 USD. To move higher it will need to close above $1,664 on the daily chart, if it manages to clear this level then it's clear skies until $1,761 as the next meaningful level of resistance.
To the downside, if we break and close below $1,472 on the daily chart, we will anticipate a sharp move down to our previous magnet zone of $1,333. A strong enough sell-off can have us retest the local lows of $1,190.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.

Copyright © 2022 Stormrake Pty Ltd, All rights reserved