Bitcoin News Today: Bitcoin's "Ugly Daily Candle" Signals Near-Term Downside Risk After 2.6% Drop

Bitcoin’s recent price movement has raised concerns among traders, with a prominent analyst warning that an “ugly daily candle” may signal further downside in the near term. Following a 2.6% drop in 24 hours that brought the price from $122,200 to approximately $119,000, Michael van de Poppe, founder of MN Trading Capital, described the candle formation as “quite ugly” in a post on X. He suggested that Bitcoin could test the $116,800 level before resuming an upward trend [1].

At the time of publication, Bitcoin was trading at $118,881 according to Nansen data, indicating a continued pullback from recent highs. Van de Poppe noted that the price had taken all liquidity on the upper end before inverting toward a key resistance level. A 1.75% further decline would see approximately $1.63 billion in Bitcoin long positions at risk of liquidation, according to CoinGlass data [1].

The recent move followed a brief surge earlier in the week, when Bitcoin rose over 3.3% to reach $122,150, bringing it close to its July 15 all-time high of $123,100. Some traders had speculated that the price could break past $126,000, a level that would open the door to higher prices. However, the failure to sustain that momentum has led to a more cautious outlook [1].

Despite the pullback, overall market sentiment remains bullish. The Crypto Fear and Greed Index remained at 68, still in the “Greed” territory, while spot Bitcoin ETFs saw continued inflows, with $178.1 million in net inflows on Monday. Meanwhile, Jan3 founder Samson Mow suggested that Ethereum investors may rotate funds back into Bitcoin if ETH prices rise high enough, potentially reversing a five-week rally in Ether [1].

Not all analysts share the same view. Tom Lee, co-founder of Fundstrat, argued that Ether is in the midst of its “Bitcoin 2017 moment” and could rise as high as $16,000, a 272% gain from its current price of $4,300. This divergence in outlook highlights the ongoing debate over which asset will lead the next bull run [1].

The “ugly daily candle” pattern observed in Bitcoin’s price chart is commonly used in technical analysis to signal potential reversals or continuations of bearish trends. Van de Poppe’s analysis suggests that the recent failure to hold above $120,000 has weakened bullish momentum and could lead to further downward pressure before a potential rebound. The $117,000 level remains a key area of interest, with a break below it likely to trigger additional selling [1].

The broader crypto market has also seen mixed performance, with assets like XRP and SOL falling more than 3.9% and 5.9% respectively. However, continued inflows into Bitcoin ETFs and growing interest in crypto payments by traditional firms suggest that institutional adoption remains a key long-term driver.

As the market digests these developments, the immediate focus remains on Bitcoin’s ability to stabilize above critical support levels. While a short-term pullback appears likely, longer-term trends remain intact. Traders will be closely watching for signs of renewed buying interest and whether the price can regain control over key psychological levels in the coming days [1].

Sources:

[1] Cointelegraph

https://cointelegraph.com/news/bitcoin-price-chart-signals-downside-short-term-upside-continues-analysts