Analyses

Shiba Inu flips Dogecoin, beats Deutsche Bank by market cap – Analysis, 1 Nov

Modern Buildings Sky Skyscrapers Technical Analysis Bitvalex 1 November 2021

The last week of October was full of exciting news and events. The week started with the MasterCard announcement about their partnership with Bakkt to enable MasterCard partners to offer consumers use cryptocurrency via custodial wallets:

Z

Source: Twitter

On the next day, according to Tesla's quarterly report, information that the company may restart accepting cryptocurrency as a means of payment appeared in the crypto space:

2Q==

Source: Twitter

The president of El Salvador Nayib Bukele took advantage of the bullish sentiment in the crypto market and the positive news by acquiring another 420 BTC:

2Q==

Source: Twitter

One of the biggest surprises for the market was the price performance of the meme coin Shiba Inu. Shiba Inu (SHIB) has flipped Dogecoin (DOGE) and is now the 9th biggest cryptocurrency with a market cap of over $40 billion, according to CoinGecko:

Z

Source: CoinGecko

What is more, with the current market cap, Shiba Inu is also bigger than the largest German banking institution Deutsche Bank (with a current market cap of $27,29 billion, according to Yahoo Finance).

Interestingly, the price of Shiba Inu skyrocketed no matter that earlier Elon Musk had announced that he doesn't possess SHIB and many skeptics expected Tesla's CEO announcement to destroy Shiba Inu's price:

9k=

Source: Twitter

It is proof that a single person cannot manipulate the price of a cryptocurrency with a billion-dollar market cap, no matter how influential they are. 

Another front-page event was Facebook's announcement that the company was officially changing its corporate name to Meta (Metaverse):

9k=

Source: Twitter

Many members of the crypto community laughed at Mark Zuckerberg's announcement because the Metaverse is what crypto has been building for the last 3-4 years; moreover, Metaverse is a term commonly used in the crypto space nowadays:

Z

Source: Twitter

The last week of October was not a very volatile one. Most of the major cryptocurrencies were consolidating. The consolidation continues in the early Monday market as well. According to Coin360.com, one Bitcoin costs €53,631.57 (+2.32%), one Ethereum – €3,734.94 (+1.52%), one DOGE – €0.2385 (+5.59%), and one UNI – €21.89 (+2.79%): 

9k=

Source: Coin360.com (Daily crypto market performance)

Now, let us look at the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.

BTC/EUR

In October, BTC/EUR recorded a new all-time high (ATH) at a level of approximately €57,500. Also, in the monthly time frame (MN), a bullish candlestick with a tall body formed in the last month – a solid bullish signal indicating that the buying pressure is intensifying:

2Q==

Moreover, the closing price in October is the highest in the monthly chart. In the technical analysis theory, this is a very bullish signal.

To spot the right moment to enter the market, let us look at a shorter time frame. For example, in the 4-hour chart (4H), BTC/EUR has a Bullish Flag (common trend continuation pattern):

2Q==

As can be seen from the chart, a breakout took place, and the price has exited the flag in the upward direction. Right now, BTC/EUR is consolidating at the upper line of the flag. If the price rebounds from this line, a buy signal will occur, and we may open a long position.

ETH/EUR

Similar to Bitcoin, in October, Ethereum recorded a new all-time high (ATH) at a level of approximately €3,850 as well. The October candlestick is also a solid bullish candlestick with the highest closing price in the monthly chart (MN):

2Q==

In our view, the new ATH and the highest monthly closing price confirm the bullish trend continuation.

It is worth remembering that, in the weekly chart (1W), ETH/EUR has formed a Cup and Handle technical pattern (C&H) – a typical bullish pattern:

Z

As can be seen from the chart, the price of Ethereum remains above the upper line of the C&H. As we already mentioned in our previous analysis, if ETH/EUR pulls back to this line, which we consider as a support line, and rebounds, a buy signal will occur. Then, we may open a long position to take advantage of the uptrend.

DOGE/EUR

In the monthly time frame (MN), DOGE/EUR has formed a Sandwich – a sequence of bullish and bearish candlesticks of similar size:

2Q==

In the technical analysis theory, a Sandwich is a candlestick formation indicating that the bulls and the bears have found consensus and the price is consolidating. That is why we see neither a clear bullish signal nor a clear bearish signal.

The daily chart (1D) confirms the sideways movement as well: DOGE/EUR keeps on consolidating at the 30-day Moving Average (MA 30) and the 90-day Moving Average (MA 90): 

9k=

As long as the price remains range-bound and there is no clear bullish signal, we will stay in wait-and-see mode.

UNI/EUR

In the monthly chart (MN), UNI/EUR formed a small bullish candlestick in October:

9k=

However, this bullish candlestick has a local low below the previous one, which is a sign indicating that the bullish sentiment is absent. 

Moreover, the weekly chart (1W) of UNI/EUR doesn't bring any clarity. A sequence of Spinning tops has formed:

9k=

This candlestick formation is a clear sign of indecision in the market and signals more sideways movement. Because of it, we will abstain from entering the market for now.

Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.

The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


Trade crypto with Bitvalex

Buy and sell BTC, ETH, BCH and LTC with EUR and USD аt great rates. EU-licensed Bitvalex supports SEPA, SWIFT, debit and credit cards, as well as AdvCash transfers. Sign up now and be one of the first to get a prepaid Bitvalex Mastercard!

Sign up

Leave a Comment


Comments