Shiba Inu Consolidates As Bitcoin Busts Through $25,000: What's Happening?

Shiba Inu SHIB/USD dipped almost 4% during Thursday’s 24-hour trading session, in tandem with the crypto sector, which saw Bitcoin temporarily pause its bullish run when data was released indicating inflation remains stubborn.

January’s producer price index data, which measures wholesale prices, rose 0.7% compared to a 0.4% consensus estimate. U.S. jobless claims fell for the week ending Feb. 11, with 1,000 fewer claims filed than the week previous.

The news caused the S&P 500 to open lower but bulls came in and bought the dip, causing the market index to move higher. Bitcoin BTC/USD was leading the crypto sector, busting up through the $25,000 level in continuation at one point, which Benzinga pointed out was likely to happen on Wednesday.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

Shiba Inu was lagging the move slightly, trading slightly lower to flat after surging 7.76% on Wednesday to close at $0.00001375.

The stock market and crypto sector have largely ignored the fundamental situation this year — that the central bank may need to continue applying pressure through further rate hikes into the spring — and Thursday’s lower proved to be a dip buying opportunity for the bulls.

SHIB dipped almost 4% during Thursday's 24-hour trading session, in tandem with the crypto sector, which saw Bitcoin temporarily pause its bullish run when data was released indicating inflation remains stubborn.

January's producer price index data, which measures wholesale prices, rose 0.7% compared to a 0.4% consensus estimate. U.S. jobless claims fell for the week ending Feb. 11, with 1,000 fewer claims filed than the week previous.

The news caused the S&P 500 to open lower but bulls came in and bought the dip, causing the market index to move higher.

Bitcoin was leading the crypto sector, busting up through the $25,000 level and one point, which Benzinga pointed out was likely to happen on Wednesday. Shiba Inu was lagging the move slightly, trading slightly lower to flat after surging 7.76% on Wednesday to close at $0.00001375.

The stock market and crypto sector have largely ignored the fundamental situation this year — that the central bank may need to continue applying pressure through further rate hikes into the spring — and Thursday's lower proved to be a dip buying opportunity for the bulls. Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Shiba Inu Chart: Although Shiba Inu was trading mostly sideways on smaller time frames on Thursday, the crypto was trading with higher-than-average volume, which indicates there's currently a large amount of interest in Shiba Inu.

The sideways choppy trading is bullish because it indicates consolidation, which is helping to lower the crypto's relative strength index (RSI). When a stock's or crypto's RSI nears or exceeds the 70% level, it becomes overbought, which can be a sell signal for bullish traders.

Thursday's consolidation has, so far, lowered Shiba Inu's RSI by about 3%, which gives the crypto more room to run higher if the bulls come in to take control. If Shiba Inu continues to trade sideways over the next few days, the crypto may form a bull flag pattern on the daily chart. If that happens, and the crypto eventually breaks up from the pattern on higher-than-average volume, the measured move is about 15%, which suggests Shiba Inu could eventually reach $0.00001530.

If Shiba Inu falls under the eight-day exponential moving average, the bull flag will be negated. Shiba Inu has resistance above at $0.00001499 and $0.00001734 and support below at $0.00001349 and $0.00001259.

See Also: If You Had $1000 Right Now, Would You Buy Shiba Inu, Dogecoin, Ethereum Classic Or Bitcoin Cash?

The Shiba Inu Chart: Although Shiba Inu was trading mostly sideways on smaller time frames on Thursday, the crypto was trading with higher-than-average volume, which indicates there’s currently a large amount of interest in Shiba Inu. The sideways choppy trading is bullish because it indicates consolidation, which is helping to lower the crypto’s relative strength index (RSI).

• When a stock’s or crypto’s RSI nears or exceeds the 70% level, it becomes overbought, which can be a sell signal for bullish traders. Thursday’s consolidation has, so far, lowered Shiba Inu’s RSI by about 3%, which gives the crypto more room to run higher if the bulls come in to take control.
• If Shiba Inu continues to trade sideways over the next few days, the crypto may form a bull flag pattern on the daily chart. If that happens, and the crypto eventually breaks up from the pattern on higher-than-average volume, the measured move is about 15%, which suggests Shiba Inu could eventually reach $0.00001530.
• If Shiba Inu falls under the eight-day exponential moving average, the bull flag will be negated.
• Shiba Inu has resistance above at $0.00001499 and $0.00001734 and support below at $0.00001349 and $0.00001259.

Read Next: Power Of The Dog? Elon Musk's Canine Tweet Has Traders Howling: The Latest On Shiba Inu, Dogecoin, Floki