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Bitcoin (BTC) Consolidates Hefty Gains, Shiba Inu (SHIB) Soars Ever Higher

Bitcoin (BTC) Consolidates Hefty Gains, Shiba Inu (SHIB) Soars Ever Higher

Nick Cawley, Senior Strategist

Bitcoin (BTC/USD) Prices, Charts, and Analysis

  • Bitcoin trading sideways around $54k.
  • Shiba Inu soars 400% in a week.
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The recent cryptocurrency market surge is taking a breather today after the market capitalization grew by around $700 billion over the last month. Horizontal resistance based on recent swing lows has not held and the market is around $300 billion from making a new all-time, capitalization, high.

Cryptocurrency Market Total Capitalization – October 7, 2021

Chart via TradingView.com

Bitcoin is currently trading either side of $54k after printing a one-month high of $55,750 earlier in today’s session. The rally, fueled by breaking above short-term trend resistance at the start of the month, has been relentless and has pushed BTC into heavily overbought territory, using the CCI indicator (bottom right of the chart). This needs to be washed out before BTC can continue to move higher. The CCI indicator has proved a useful tool recently, identifying trading areas where Bitcoin has been overbought or oversold.

Bitcoin (BTC/USD) Daily Price Chart - October 7, 2021

While the alt-coin has generally underperformed Bitcoin in the last couple of days, Shiba Inu (SHIB) has rallied heavily since the start of the month and is up around 400%. SHIB had underperformed the market over the last few weeks and not taken part in any alt-coin rally, the recent surge has bought the token back into the spotlight. While there is no quantifiable reason for the move, it looks strong on very heavy volume. This should add a layer of support if the market turns lower.

Shiba Inu (SHIB) Daily Price Chart – October 7, 2021

What is your view on Bitcoin – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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