Bitcoin Faces Potential Further Decline After Recent Drop
Bitcoin’s recent price movements suggest there might be more declines on the horizon following a rough day on Monday. Over the past 24 hours, the cryptocurrency has decreased by 2.6%, according to analysts.
“It’s been a very ugly everyday candle,” remarked Michael Van De Poppe, founder of MN Trading Capital. He pointed out that Bitcoin (BTC) dropped from $122,200 to around $119,000 during that timeframe.
Initially, investors were optimistic after a brief surge in Bitcoin’s value earlier that day.
Anticipation of Further Decline Before Recovery
Following Van de Poppe’s comments, Bitcoin saw a slight decline and was trading at approximately $118,881 at publication time, as reported by Nansen.
“I wouldn’t be shocked if it tested $116.8K before bouncing back,” he added.
Data from Coinglas indicated that another 1.75% drop could trigger liquidations worth about $1.63 billion in Bitcoin.
Van de Poppe noted that “it removed all the liquidity from the highs and quickly reversed toward high resistance.” This drop followed a morning surge where Bitcoin had increased over 3.3%, reaching $122,150 and nearing its all-time high of $123,100 set back in mid-July.
Crypto trader Rekt Capital mentioned that if Bitcoin can break convincingly above $126,000, it could see significant price gains. Just a month prior, Rekt had noted that Bitcoin’s potential success largely depended on following past market cycles.
Market Sentiment Remains Strong Despite Fluctuations
Despite the minor price decline, sentiment around Bitcoin continues to be optimistic.
The Fear and Greed index indicated that other cryptocurrencies, like XRP and Solana, still exhibit “Greed” sentiments even after losing 3.94% and 5.90% of their value, respectively.
The Spot Bitcoin Exchange-Traded Funds (ETFs) also saw their fourth straight day of inflows on Monday, totaling $178.1 million according to data from Far Side.
Samson Mow, founder of Jan3 and a Bitcoin enthusiast, suggested that if Ethereum traders start realizing their profits and switch back to Bitcoin, it could bolster Bitcoin’s price in the near term. He speculated that Ethereum investors might return to Bitcoin once prices are favorable enough.
However, opinions differ. Tom Lee, co-founder of FundStrat, expressed a strong belief that Ethereum could be experiencing a “Bitcoin 2017 moment,” predicting it could reach $16,000—a dramatic increase of nearly 272% from its current price of around $4,300.
This article does not offer investment advice. Readers should conduct their research before making any investment or trading decisions.
