Bitcoin price taps 5-day highs as Shiba Inu leads altcoin gains

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Bitcoin price taps 5-day highs as Shiba Inu leads altcoin gains
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Bitcoin (BTC) continued to strengthen on June 21 as Wall Street trade opened near $21,500.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

Analyst sees weakening BTC stock correlation

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD at $21,633 on Bitstamp, its best performance since June 16.

The largest cryptocurrency managed to avoid new losses in the new week; these have been reserved for the weekend so far. Hence, the futures market reopened without falling to $17,600.

CME Bitcoin futures 1-hour candle. Source: TradingView

While some plan to short BTC at current levels, the sentiment among market participants is broadly one of “wait and see” as U.S. stocks open. The S&P 500 and Nasdaq 100 both opened about 2.5% higher.

Binance

Popular trader Bierre is watching the 200-period moving average (MA) on the four-hour chart. For him, breaking it on the day would be a sign of strength not seen in weeks.

Meanwhile, on the topic of stocks, data from Bloomberg shows that Bitcoin is actually rapidly reducing its correlation with the Nasdaq 100. The potential upside could be that bitcoin doesn’t trade like tech stocks, improving its ability to withstand central bank monetary tightening.

As Cointelegraph reported this week, global stock markets are currently facing their worst quarter in history.

Mike McGlone, chief commodities strategist at Bloomberg Intelligence, added in a June 20 tweet: “The 1H plunge in risk assets is eliminating inflation at breakneck speed, which could translate into pre-pandemic deflationary forces in 2H. appear again.”

“The main beneficiaries of this situation are likely to be gold, bitcoin and U.S. Treasury long-term bonds.”

McGlone also questioned whether stocks are “overheated” rather than “mature bitcoin.”

SHIB headlines altcoin rally

On altcoins, the relief is also evident as Bitcoin progresses.

Related: This is not hodling!Over 50% of Bitcoin addresses are still profitable

However, the top 50 cryptocurrencies by market cap are led by a surprise mover in the form of Shiba Inu (SHIB).

The meme-based tribute to Dogecoin (DOGE) saw a 20% increase on the day, after its namesake received a new pledge of support from Tesla CEO Elon Musk.

Elsewhere, Ethereum (ETH) was near $1,200 at the time of writing, also the highest since June 16, as the daily gain was 5%.

ETH/USD 1-hour candle chart (Binance). Source: TradingView

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.



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