A crypto analyst warned that Bitcoin’s price may face further decline after a stumble on Monday, when it dropped 2.6% over 24 hours.
“Quite an ugly daily candle,” said Michael van de Poppe, founder of MN Trading Capital, in a post on X. Bitcoin fell from $122,200 to around $119,000 during that period.
Investors had been optimistic for a new all-time high following an early surge on Monday.
Bitcoin might dip further before making a move upward
Since van de Poppe’s post, Bitcoin has dipped further, trading at $118,881 at the time of publication, according to Nansen.
“I wouldn’t be surprised if we test $116.8K before moving higher,” van de Poppe added.
According to CoinGlass data, a further 1.75% drop to this level could put approximately $1.63 billion worth of Bitcoin long positions at risk of liquidation.
“It has taken all the liquidity at the highs and immediately reversed toward the range high resistance,” van de Poppe explained.
This followed early Monday optimism, when Bitcoin surged over 3.3% to $122,150, approaching the $123,100 all-time high reached on July 15. Some traders were speculating that new record highs could be on the horizon.
Crypto trader Rekt Capital commented at the time, “If Bitcoin can convincingly break ~$126,000, there’s a strong chance the price will rise quickly and significantly.”
This came just a month after Rekt suggested Bitcoin might only have a few months of price growth left in the current cycle, especially if it follows the historical pattern seen in 2020.
Bitcoin sentiment remains strong despite price fluctuations
Bitcoin market sentiment remains strong despite a slight price dip.
The Crypto Fear & Greed Index dropped two points to 68 but still stays in the “Greed” zone, even as crypto assets like XRP and Solana declined by 3.94% and 5.90%, respectively.
Spot Bitcoin exchange-traded funds (ETFs) saw inflows for the fourth consecutive day on Monday, totaling $178.1 million, according to Farside data.
Bitcoin could see further gains soon if Ether traders begin taking profits and rotate funds back into Bitcoin, said Samson Mow, founder of Jan3 and a Bitcoin maximalist.
Mow predicted that Ethereum investors might switch back to Bitcoin once ETH prices rise enough, potentially reversing Ether’s recent five-week rally.
However, not everyone shares this view. On Thursday, Fundstrat co-founder Tom Lee called Ether’s rally its “Bitcoin 2017 moment,” forecasting it could reach as high as $16,000 — a roughly 272% increase from its current price of $4,300.
