Breakouts, Shakeouts, & Fresh Market Highs (Oct. '21 Chartbook)

In this edition of the Delphi Chartbook, we look at the state of crypto market structure, on-chain activity, and important trends our team is watching. Stay tuned for the second part of this report focused on key macro trends we’ll be publishing shortly! 

Crypto Market Heats Up

The crypto market surged to new highs in October with the total market value of publicly traded crypto assets breaching $2.8 trillion this week. Bitcoin, alongside the rest of the crypto market, rebounded in October following a disappointing September. Part of the price run up was fueled by speculation of a BTC-linked futures ETF, which helped catapult BTC to a new all-time high; part of it was a favorable technical setup that all but guaranteed a big move ahead.

In one of our recent market reports, titled “September Showers Bring Fall Gains”, we noted:

“Historically, early September through early October has been a difficult period for BTC, and the rest of the crypto market hasn’t fared much better. If we were to see a pullback in the near term, however, our guess is it’ll be rather short-lived, especially since we’re approaching one of the best periods of the year for the crypto market.”

Right on queue, BTC gained +40% in October, marking its best calendar month of the year as it breached a new all-time high.

Despite the pullback from its latest ATH, BTC’s ability to hold above $60k and close out the month at ~$61k is significant as it marks BTC’s highest monthly close on record.

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