Urgent Bitcoin Price Drop: Analyst Warns of Potential Dip Below $117K
Bitcoin’s recent volatility has captured significant market attention. A swift price reversal this week followed high expectations for new highs. This shift now signals the possibility of further declines, causing concern among investors. Many observers are closely watching the Bitcoin price movement, especially after a key analyst’s recent warning.
Bitcoin Price Faces “Ugly Daily Candle” Warning
Bitcoin experienced a notable stumble on Monday. It fell 2.6% over 24 hours. Crypto analyst Michael van de Poppe, founder of MN Trading Capital, described this as a “quite ugly daily candle” in an X post. Specifically, Bitcoin (BTC) dropped from $122,200 to approximately $119,000 within that 24-hour period. This decline occurred despite earlier hopes among investors for a new all-time high, following Bitcoin’s strong surge on Monday.
The current Bitcoin analysis suggests potential for more downside before a recovery. Bitcoin has fallen slightly further since van de Poppe’s initial post. It traded at $118,881 at the time of publication, according to Nansen. Van de Poppe added, “Wouldn’t be surprised if we’ll test $116.8K before continuing.” This specific level is crucial for many traders.
Potential BTC Prediction Below $117K
A further 1.75% move down to the $116.8K level carries significant implications. CoinGlass data indicates this drop could put approximately $1.63 billion of Bitcoin long positions at risk of liquidation. Van de Poppe noted that Bitcoin had “taken all the liquidity on the highs and immediately inversed toward the range high resistance.” This suggests a market move designed to capture liquidity before a reversal. Therefore, many are watching this BTC prediction closely.
This comes after high optimism earlier on Monday morning. Bitcoin had soared over 3.3% to $122,150. This moved it closer to its $123,100 all-time high, reached on July 15. Some traders were actively speculating it could soon reach new all-time highs. Crypto trader Rekt Capital, for instance, stated at the time, “If Bitcoin is able to convincingly break ~$126,000, then chances are the price will go a lot higher and quickly.” However, Rekt Capital had also previously suggested Bitcoin might only have a few months of price expansion left in its cycle, especially if it followed historical patterns from 2020.
Analyzing Recent Crypto Market Movements
Despite the slight dip in Bitcoin price, overall market sentiment remains high. The Crypto Fear and Greed Index fell only two points to 68. This score still holds firmly in the “Greed” territory. This indicates that while Bitcoin saw a correction, broader investor confidence remains robust. Conversely, other major crypto assets experienced more significant declines. XRP (XRP) fell 3.94%, and Solana (SOL) dropped 5.90%.
Furthermore, spot Bitcoin exchange-traded funds (ETFs) continued to demonstrate strength. They posted their fourth consecutive day of inflows on Monday. These inflows totaled $178.1 million, according to Farside data. This consistent institutional interest provides a foundational layer of support for Bitcoin. It suggests that despite short-term price fluctuations, a significant portion of the market sees long-term value in Bitcoin.
Diverging Views on Bitcoin and Ethereum Price Trends
The interplay between major cryptocurrencies also plays a role in future price movements. According to Jan3 founder and Bitcoin maxi Samson Mow, Bitcoin could gain more upside in the near term. This might happen if Ether (ETH) traders begin cashing out profits. They could then rotate these funds back into Bitcoin. Mow predicts Ethereum investors will eventually switch back to Bitcoin once ETH prices reach high enough levels. This potential rotation could reverse a five-week surge in Ether.
However, not everyone agrees with this perspective. Fundstrat co-founder Tom Lee offered a contrasting view on Thursday. Lee stated that Ether is currently having its “Bitcoin 2017 moment.” He suggested that the Ethereum price may reach as high as $16,000. This represents an approximate 272% increase from its current price of $4,300. This divergence highlights the differing investment theses within the crypto market, with some favoring Bitcoin’s established position and others seeing greater growth potential in Ethereum.
Key Levels and Future Outlook
The potential test of the $116.8K level is a critical point for traders. A move below this could trigger further liquidations, creating more downward pressure. However, the sustained institutional interest through ETF inflows and the overall “Greed” sentiment suggest underlying strength. The debate between Bitcoin and Ethereum’s future price trajectories also adds complexity. Investors must consider these varying opinions when making decisions.
The market remains dynamic, with both bullish and bearish signals. Traders will closely monitor price action around key support and resistance levels. The $117K CME gap also remains a point of interest for many analysts. Understanding these technical and fundamental factors is essential for navigating the current landscape. 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.
