Bitcoin’s price chart indicates there could be further downside following a stumble on Monday, with Bitcoin falling 2.6% over 24 hours, a crypto analyst said.
“Quite ugly daily candle,” MN Trading Capital founder Michael van de Poppe said in an X post on Monday, after Bitcoin (BTC) fell 2.6% from $122,200 to about $119,000 within the 24-hour timeframe.
Investors had been hoping for a new all-time high after an early Monday Bitcoin surge.
Bitcoin may be heading lower before it goes higher
Bitcoin has fallen slightly more since van de Poppe’s post, trading at $118,881 at the time of publication, according to Nansen.
“Wouldn’t be surprised if we’ll test $116.8K before continuing,” van de Poppe added.
CoinGlass data showed that a further 1.75% move down to this level would put about $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 came after optimism early Monday morning, when Bitcoin soared over 3.3% to $122,150, moving closer to the $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 came just a month after Rekt said Bitcoin may only have a few months of price expansion left in the cycle, especially if it followed the historical pattern from 2020.
Bitcoin sentiment stays high amid price wobble
Bitcoin market sentiment remained high despite the slight dip in price.
The Crypto Fear & 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.
Spot Bitcoin exchange-traded funds (ETF) posted a fourth consecutive day of inflows on Monday, with $178.1 million, according to Farside data.
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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 predicted Ethereum investors would switch back to Bitcoin once ETH prices got high enough, potentially reversing a five-week surge in Ether.
However, not everyone agreed. On Thursday, Fundstrat co-founder Tom Lee said that Ether was having its “Bitcoin 2017 moment” and may reach as high as $16,000, representing about a 272% increase from its current price of $4,300.
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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.