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Bitcoin holds steady while Ethereum gains momentum- What’s next?

2min Read

The slump in the OBV and Bitcoin’s dip below the mid-range level suggested that another price drop was likely.

Bitcoin Holds Steady While Ethereum Gains Momentum- What’s Next?
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  • 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.

Bitcoin Dominance Chart

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

Bitcoin 2-Hour Chart

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.

Bitcoin Liquidation Heatmap

Source: Coinglass

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

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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