Big Correction Coming for Bitcoin? Support Break Could Push BTC to $100K

Bitcoin (BTC) has declined by 6% in the past 30 days as the token seems to have hit a ceiling after rising to $124,000.

Trading volumes have surged to $70 billion in the past 24 hours as BTC drops below $110,000. As a result, crypto long liquidations have surged to $450 million during this same period with BTC alone accounting for a third of that total.

Top altcoins are also experiencing strong pullbacks including Ethereum (ETH) and Solana (SOL), which have retreated by 4.5% each.

Analysts indicate that BTC could be suffering as a result of the beginning of altcoin season as capital could be rotating out of the top crypto and into the most promising assets in this category.

Weeks after BTC hit an all-time high, BNB Coin (BNB) cut the ribbon as it rose to $900 while Ethereum (ETH) moved near $5,000 and made a new price record just days ago.

Both tokens are among the best-performing assets in the top 5 with year-to-date (YTD) gains of 32% and 23% respectively.

Weekly Dominance Drops Below 60% for the First Time in Months

The weekly Bitcoin Dominance chart shows that this metric has broke a long-dated trend line support after dropping below 60% for the first time since January. As a result, the top crypto’s dominance percentage could now land near the 55% area.

Bitcoin Dominance Weekly Chart – Source: TradingView

This level shows confluence with the 200-week exponential moving average (EMA), which increases its technical relevance.

So, either BTC will keep dropping and altcoins will trade range-bound for a while, or they all rise but altcoins start to outperform the top crypto in terms of percentage gains.

This pullback occurred as the head of the Federal Reserve, Jerome Powell, confirmed that the central bank is ready to make its first interest rate cut of this year.

It appears that this has triggered a ‘sell the news’ moment as market participants prepare for the next leg up. The majority of analysts surveyed by FedWatch agree that Powell should cut rates during the September 17 FOMC meeting.

Market conditions favor a bullish outlook but altcoin season points to a much higher upside potential ahead for top altcoins compared to Bitcoin (BTC).

BTC Eyes $100K After Bearish Support Breakout

Looking at the daily chart, BTC broke its trend line support a week ago and has currently moved below a key support at $111,000 that had acted as resistance in the past.

BTC/USD Daily Chart (Bitstamp) – Source: TradingView

We could expect a retest of this level later on but, for now, the trajectory of the price seems to be downward and we could soon hit the $100K mark in a few days if this correction continues.

Whether that is a good opportunity to buy or not would depend on what your view is about altcoin season. If you believe it has started already, BTC could rise but at a much slower pace compared to ETH and SOL, for example.

Hence, it won’t be a bad time for some tactical rebalancing. Selling BTC now and buying ETH at least as it trades way below the $5,000 – the most likely near-term target. In any case, grabbing BTC at $100K may not be a bad idea, but the Bitcoin could consolidate for a while as investors keep rotating capital toward more exotic and high-risk/high-reward corners of the market.