Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Price charts indicators flashed sell signals on lower timeframes.
- Long positions discouraged, reinforcing short-sellers’ edge.
Bitcoin [BTC] has fluctuated above $30k for about 19 days – since 21 June. BTC’s extended consolidation and fluctuations have sent most altcoins into massive pullbacks. In particular, Pepe [PEPE] has shed over 20% – which officially morphs its pullback into a downtrend.
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At the time of writing, BTC threatened to drop below $30k. However, the BTC price has been swinging between $29.5k and $31.5k for the past few days. If it breaches the $29.5k, PEPE could smash immediate lower supports.
Is more contraction likely?
Source: PEPE/USDT on TradingView
PEPE graced a new high of $0.00000190 amidst massive ETF-induced hype around BTC. However, the ETF-hype has since dissipated, setting BTC into fluctuations. PEPE has been making lower highs in the same period after gracing $0.00000190 on 3 July.
The technical indicators also flashed sell signals. In particular, the Relative Strength Index made lower highs, denoting buying pressure declined in the past few days. In addition, the On Balance Volume eased while the Average Directional Index dropped below 20, showing demand eased and PEPE lacked a strong trend.
So, short-sellers could extend gains to lower support levels at $0.00000140 or $0.00000131. A further drop below $$0.00000130 could make a retest of $0.00000100 more likely.
But if BTC secures the $29.5k support, PEPE’s rebound from the immediate support level could be likely.
How much are 1,10,100 PEPEs worth today?
More long positions discouraged
Source: Coinglass
According to Coinglass,>$500k worth of long positions have been liquidated at the time of writing. However, short positions suffered only about $20k of wreckage in the same period, reinforcing a bearish sentiment in the futures market.
Nevertheless, the sentiment could flip bullish if BTC steadies and inflicts a turn-around near $29.5k. So, traders should track the overall sentiment and BTC price action for better-optimized trade set-ups.
