ApeCoin [APE]: With stiff resistance close by, here’s where you can go short

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Bitcoin [BTC] fell below the $30k mark, and the $28.7k was a level of support that has held for nearly a month. Could Bitcoin be pushed lower, or will a reversal come into play? This would likely have an impact on ApeCoin [APE] in the hours to come.

A bounce upward could give a decent entry to a short position on APE, but patience could be required. Despite the bearish structure of APE on the charts, a push toward the $5.8-$6 area can not yet be ruled out.

Source: APE/USDT on TradingView

The H4 chart shows a band of resistance (red box) that has consistently rejected the upward advances of APE over the past month. Therefore, it is likely that going forward, another rejection can be expected.

Fibonacci retracement and extension levels were plotted based on APE’s drop from $7.48 to $5.93 and showed the 23.6% and 61.8% extension levels to lie at $5.57 and $4.98. There is a long-term significant level of resistance at $5.95.

Over the next week, the $5.6-$6 could be revisited. However, it is a region of bearish dominion. Hence, a move lower could materialize once more.

Source: APE/USDT on TradingView

On the H1 chart, an upper candlewick to $5.57 emerged in recent hours but it signified the strong selling pressure, which forced the price to move to ward $5.3 at press time. Hence, in the next few hours, a move to $4.98 could be likely.

Thereafter, it remains uncertain. APE could continue to push lower, or, it could see a bounce back to the $5.6 mark in search of liquidity before heading lower once more. Hence, patience would be key here. A pullback to the $5.6 area on this downtrend