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

Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a trip to near $21,500.

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

nalyst eyes diminishing BTC stocks correlation

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

The largest cryptocurrency managed to avoid fresh losses into the new week; so far, these are reserved for the weekend. As such, futures markets reopened without being subjected to the dip to $17,600.

CME Bitcoin futures 1-hour candle chart. Source: TradingView

While some planned to short BTC at current levels, the mood among market participants was broadly one of “wait and see” as U.S. equities opened up. The S&P 500 and Nasdaq 100 both added around 2.5% on the open. 

Popular trader Bierre was eyeing 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 for multiple weeks.

To highlight differently why today fight should be all about H4 trend -> May 14-16th.

Post dump rally, broke H4 trend for the first time since > 38-39k, US opened, failed to hold H4 trend back to the lows into days (and eventually weeks) of ranging.

Just some thoughts.

— Bierre (@pierre_crypt0) June 21, 2022

On the topic of stocks, meanwhile, data from Bloomberg showed that Bitcoin was in fact swiftly reducing its correlation with the Nasdaq 100 in particular. A potential benefit could come in the form of Bitcoin trading less like a tech stock, boosting its ability to weather the monetary tightening of central banks.

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

#Bitcoin’s tight relationship w/Tech stocks, fueled by declines in both amid Fed hikes & high inflation, drops amid crypto rout. Bitcoin“s 20d correlation w/Nasdaq 100 has fallen from ~0.88 in early May to the low-0.30’s now, BBG has calculated.

— Holger Zschaepitz (@Schuldensuehner) June 21, 2022

“Plunging risk assets in 1H are taking away inflation at a breakneck pace, which may translate into pre-pandemic deflationary forces resurfacing in 2H,” Bloomberg Intelligence chief commodity strategist Mike McGlone added in part of a tweet posted June 20.

“Primary beneficiaries of this scenario may be gold, Bitcoin and US Treasury long-bonds.”

McGlone additionally queries whether stocks were “too hot” versus a “maturing Bitcoin.”

SHIB headlines altcoin rebound

On altcoins, relief was also visible as Bitcoin made strides higher.

Related: That’s not hodling! Over 50% of Bitcoin addresses still in profit

The top fifty cryptocurrencies by market cap were led by a surprise mover, however, in the form of Shiba Inu (SHIB).

The meme-based tribute to Dogecoin (DOGE) added 20% on the day, this coming after its namesake received fresh assurances of support from Tesla CEO Elon Musk.

Elsewhere, Ether (ETH) neared $1,200 at the time of writing, also its highest since June 16 on the back of 5% daily gains.

ETH/USD 1-hour candle chart (Binance). Source: TradingViewcom. Every investment and trading move involves risk, you should conduct your own research when making a decision.