- BTC has a silver lining; the sharper pullback may have flushed out weak hands.
- Meanwhile, PEPE could still steal the spotlight.
This month, Bitcoin [BTC] has twice tried to break past the $65K resistance, with both attempts followed by sharp pullbacks.
The latest drop, which drove BTC down to $58K – its lowest in over two weeks – has raised concerns about a deeper correction.
Trading at $62,662 at press time, AMBCrypto warns that if a similar pattern holds, Bitcoin may face further downside pressure.
However, there’s a silver lining. The sharper pullback may have flushed out weak hands, potentially sparking renewed interest from stronger buyers.
This cleansing effect often leads to fresh accumulation, setting the stage for a rebound.
While Bitcoin has struggled, memecoins like PEPE have seen a resurgence. PEPE has risen over 5% in a week.
Typically, memecoins thrive during periods of market uncertainty as traders seek high-risk, high-reward opportunities.
But PEPE’s performance may still be tied to Bitcoin’s price action.
BTC is showing short-term potential
Currently, it looks like BTC is heading toward a short-term correction, with longs regaining control in the market.
This scenario sets up an ideal short-squeeze condition, where short sellers are forced to buy back BTC, driving the value of each token higher.
However, this doesn’t guarantee a rebound strong enough to position BTC for a bull run to $70K.
Over the past week, long-term holders have moved less than average, while sellers holding BTC for less than 155 days have started to sell off their holdings, as indicated by the green wig.
Source: BGeometrics
In the context of a bull market, increased selling often signals a potential market top. As more investors take profits, concerns grow about a deeper pullback that could push BTC back below $60K.
Conversely, if $62K proves to be a market bottom – with longs dominating, LTHs remaining steady, and others viewing this as a dip to buy – it may signal the start of an accumulation phase.
It’s crucial to monitor these actions closely; any slight divergence in these trends could limit the likelihood of a rebound, which currently seems likely.
PEPE might stay in the green
Historically, memecoins have seen dramatic rallies during Bitcoin corrections as traders seek high-volatility opportunities in a shaky market.
However, they are also highly sensitive to Bitcoin’s broader market direction.
If BTC can hold its current levels and start to rally, PEPE could experience a short-term correction as traders shift focus back to BTC and other high-cap assets.
On the flip side, if Bitcoin continues to falter, PEPE may benefit from another memecoin cycle, potentially pushing it to new range highs.
While many newly launched memecoins have recorded double-digit surges, PEPE might continue to stay in the green as well.
Source : Glassnode
In the last three days, PEPE surged above $0.000010 but struggled to hold that level.
A huge influx of 1.8 trillion PEPE tokens deposited into exchanges – the highest in three months – has made it tough for the bulls to maintain momentum.
This highlights just how volatile memecoins can be. Interestingly, as BTC pulls back, PEPE is again experiencing an increase in net withdrawals, which historically signals a market bottom.
For a successful bull run, consistent net outflows are crucial. If this trend breaks as BTC regains dominance, it could dampen the renewed optimism surrounding PEPE.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
Overall, the market appears to favor memecoins right now. The next few days will be crucial in determining whether BTC can regain strength, or if PEPE will continue to steal the spotlight.
If it does, PEPE might soon break past the $0.000010 resistance.