Bitcoin ‘ugly daily candle’ could signal drop below $117K: Trader

Bitcoin’s price chart indicates there could be further downside following a slight stumble on Monday with Bitcoin falling 2.6% over 24 hours, a crypto analyst says.

“Quite ugly daily candle,” MN Trading Capital founder Michael van de Poppe said in an X post on Monday, after Bitcoin (BTC) fell 2.60% from $122,200 to approximately $119,000 within the 24-hour timeframe

Investors had been hoping for a new all-time high after Bitcoin surged on Monday

Bitcoin may be heading lower before it goes higher

Bitcoin has fallen slightly further since van de Poppe’s post, trading at $118,881 at the time of publication, according to Nansen.

Bitcoin is trading at $118,881 at the time of publication. Source: Nansen“Wouldn’t be surprised if we’ll test $116.8K before continuing,” van de Poppe added

CoinGlass data shows that a further 1.75% move down to this level would put approximately $1.63 billion of Bitcoin long positions at risk of liquidation.

“It has taken all the liquidity on the highs and immediately inversed toward the range high resistance,” van de Poppe said.

It comes after high optimism early Monday morning, when Bitcoin soared over 3.3% to $122,150, moving closer to its $123,100 all-time high it reached on July 15. Some traders were speculating it could soon reach new all-time highs.

Crypto trader Rekt Capital said at the time, “If Bitcoin is able to convincingly break ~$126,000, then chances are the price will go a lot higher and quickly.”

It comes just a month after Rekt said Bitcoin may only have a few months of price expansion left in the cycle, especially if it follows the same historical pattern from 2020.

Bitcoin sentiment stays high amid price wobble

Bitcoin market sentiment remains high despite the slight dip in price

The Crypto Fear and Greed Index fell two points to 68, still holding in “Greed,” despite crypto assets like XRP (XRP) and Solana (SOL) falling 3.94% and 5.90% respectively.

Meanwhile, spot Bitcoin exchange-traded funds (ETF) posted the fourth consecutive day of inflows on Monday of $178.1 million, according to Farside data.

Related: BTC price to fill $117K CME gap? 5 things to know in Bitcoin this week

Bitcoin could gain more upside in the near term if Ether (ETH) traders begin cashing out profits and rotating funds back into Bitcoin, according to Jan3 founder and Bitcoin maxi Samson Mow.

Mow predicts Ethereum investors will switch back to Bitcoin once ETH prices get high enough, potentially reversing a five-week surge in Ether.

However, not everyone agrees. On Thursday, Fundstrat co-founder Tom Lee said that Ether is having its “Bitcoin 2017 moment” and may reach as high as $16,000, representing an approximate 272% increase from its current price of $4,300.

Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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