- The altcoin market has outperformed BTC over the past week.
- A BTC dip toward $100k could ensue soon.
Bitcoin [BTC] saw an explosive rally from the 6th to the 9th of May, rising from $93.8k to $103.6k. Over the past six days, the king of crypto saw its volatility curtailed severely.
This short-term coiled-up price action could hint at a consolidation phase before the next move.
While Bitcoin fell into a stupor on the price chart, compared to its burst of bullish activity since the 20th of April, Ethereum [ETH] has rallied 13.4% over the past five days.
The altcoin market has surged alongside ETH, leading to a drop in Bitcoin Dominance.
Source: BTC.D on TradingView
This indicated that the altcoin market has outperformed BTC in the short term. At the same time, there were signs of increased market confidence.
A bullish Bitcoin move was anticipated, and the liquidation charts mapped out how this move could unfold.
Bitcoin set to descend toward $100k before the next rally
Source: BTC/USDT on TradingView
On the 2-hour chart, a range formation from $101.7k to $104.8k was plotted. At press time, Bitcoin had slipped below the mid-range support at $103.3k. This was a sign that it would likely test the range lows.
At the same time, the OBV was testing the lows formed on the 9th of May. This was another sign that sellers had the upper hand in the short-term.
The liquidation heatmap of the past week showed that the $106k and the $98.6k were the strongest magnetic zones nearby.
A build-up of liquidity was also seen at $102.4k and $100.3k, and these regions were closer to the market price than the $106k level.
Combined with the slump in the OBV and the price’s dip below the mid-range level, another Bitcoin drop appeared likely. The liquidation levels to the south suggested that a price dip to $100.3k, or as deep as $98.6k, could be brewing.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
