Bitcoin’s recent dip below $80,000 shook the crypto markets, causing ripple effects on major tokens. This impacted tokens like Pepe and Shiba Inu, which have significantly declined in the past few days. However, the technicals now suggest that the markets may be poised for a major recovery.
On February 28, Pepe (PEPE) and Shiba Inu (SHIB) were under bearish pressure. Pepe dropped 8.20% to $0.000007690, while Shiba Inu was down 7.89% to $0.00001351. The main reason for their decline was Bitcoin’s price action, which traded at a daily low of $78,248.
This has brought Bitcoin under its 200-day exponential moving average, a bearish signal that has instilled fear in the market. Notably, the Crypto Fear & Greed Index touched the extreme fear level of 10 yesterday. However, as many traders have noted, these indicators often signal a coming reversal.
In particular, Bitcoin’s dip to $78,000 puts it near the lower boundary of its long-term channel. This channel held from the fourth quarter of last year, when Bitcoin defended it last time. From this analysis, recovery will likely follow between $92,000 and $107,000, with the potential to reach a high of $140,000.
In the short term, however, Bitcoin could dip to $73,000, testing the long-term support. A fall below that level could send the crypto markets, including Pepe and Shiba Inu, to a complete capitulation.
Pepe and Shiba Inu Price Outlook
Pepe and Shiba Inu have been trending downward for weeks. However, if the bullish case for Bitcoin holds up, both of these tokens could see a major increase due to the relative volatility of altcoins compared to BTC. This is especially true for SHIB, which has recently seen positive indicators of its own.
Recently, Shiba Inu has formed a double-bottom pattern at $0.00001261, which is also the level it bottomed out in August. This pattern suggests that Shiba Inu may be set for a rebound, retesting the double bottom neckline at $0.00003326. If it does so, this would mean a potential 135% increase from its current level.
READ MORE: Shiba Inu Price Prediction: How High Can SHIB Get if Ethereum Hits $4,000?
