Key Points
- The altcoin market has seen more growth than Bitcoin (BTC) in the past week.
- A drop in Bitcoin’s price towards $100k could be imminent.
Bitcoin (BTC) experienced a significant surge from the 6th to the 9th of May, moving from $93.8k to $103.6k. Over the past week, Bitcoin’s volatility has been significantly reduced.
This short-term stability could suggest a period of consolidation before the next price movement.
Altcoin Market Outperforms Bitcoin
As Bitcoin’s price activity slowed down, Ethereum (ETH) saw a rally of 13.4% over the past five days. The altcoin market followed Ethereum’s lead, resulting in a decrease in Bitcoin’s dominance. This shows that the altcoin market has been outperforming Bitcoin in the short term. There were also indications of increased market confidence.
A positive Bitcoin move was expected, with liquidation charts indicating how this could play out.
Potential Drop in Bitcoin’s Price
A price range from $101.7k to $104.8k was identified on the 2-hour chart. At the time of writing, Bitcoin had fallen below the mid-range support level of $103.3k, suggesting that it might test the range lows.
The OBV was also testing the lows formed on the 9th of May, indicating that sellers could have the upper hand in the short term.
The liquidation heatmap of the past week showed that the $106k and $98.6k levels were the most attractive. There was also a build-up of liquidity at $102.4k and $100.3k, which were closer to the market price than the $106k level.
Considering the decrease in the OBV and the price’s drop below the mid-range level, another Bitcoin price drop seems likely. The liquidation levels suggest that a price drop to $100.3k, or even $98.6k, could be on the horizon.
Please note that this information does not constitute financial, investment, trading, or any other type of advice. It is purely the writer’s opinion.
