Bitcoin News Today: Bitcoin drops 2.6% as bearish candle raises short-term pullback concerns

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 2:12 am ET1min read
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Aime RobotAime Summary

- Bitcoin dropped 2.6% to $119,000, with analysts noting a bearish candlestick pattern signaling potential short-term weakness before resuming an uptrend.

- CoinGlass data warns a 1.75% further decline could trigger $1.63B in liquidations, while ETF inflows reached $178.1M, reflecting cautious optimism.

- Market dynamics hinge on Ethereum's performance, with conflicting forecasts: ETH's rise could boost BTC, but Fundstrat's Tom Lee predicts ETH might hit $16,000.

- Key support at $116.8K and broader crypto flows will determine Bitcoin's next phase, amid mixed signals from technical indicators and investor sentiment.

Bitcoin’s recent price movement has drawn attention from traders and analysts, particularly due to a so-called “ugly daily candle” that has raised concerns over a potential short-term pullback. On Monday,

Bitcoin
fell 2.6% within 24 hours, dropping from $122,200 to around $119,000 [1]. Michael van de Poppe, founder of MN Trading Capital, described the candlestick as an indicator of bearish pressure, noting that it reflected a sharp reversal after a brief bullish surge [1].

Van de Poppe suggested that Bitcoin may be heading lower before it moves higher again, with the $116.8K level potentially coming into focus before a resumption of the uptrend. However, he emphasized that this is not a confirmed forecast but rather an analysis based on current market structure [1]. CoinGlass data supports this, indicating that a further 1.75% drop could lead to approximately $1.63 billion in Bitcoin long positions being liquidated [1].

The price decline followed a morning surge that pushed Bitcoin over 3.3% higher to $122,150, nearing its July 15 all-time high of $123,100 [1]. While some traders had speculated that a break above $126,000 could lead to a rapid new record, van de Poppe noted that the market had already absorbed available liquidity at higher levels and immediately reversed toward resistance [1]. This suggests that the market may need to consolidate before making further progress.

Despite the volatility, overall market sentiment remains cautiously optimistic. The Crypto Fear and Greed Index remains at 68, still in the “Greed” category, although it has declined slightly from recent peaks [1]. Additionally, spot Bitcoin ETFs saw continued inflows, recording $178.1 million in Monday’s trading session—the fourth consecutive day of positive flows [1].

The potential for Bitcoin to gain more upside also hinges on movements in Ether (ETH). Samson Mow, founder of Jan3, has suggested that if ETH investors begin cashing profits and shifting funds back to Bitcoin, BTC could see renewed strength [1]. However, this scenario is conditional on ETH reaching higher price levels first. In contrast, Fundstrat co-founder Tom Lee has taken a more bullish stance on Ether, comparing its current trajectory to Bitcoin’s 2017 rally and projecting a potential rise to $16,000, which would represent a 272% gain from its current price of $4,300 [1].

Bitcoin’s price remains subject to significant swings, with traders watching key levels and broader market flows for directional clues. While the $117,000 threshold is in focus, the interplay between Bitcoin and other assets, as well as ETF activity, will be key factors in shaping the next phase of its price action [1].

Source: [1] Bitcoin price chart signals downside, short-term upside continues – analysts [https://cointelegraph.com/news/bitcoin-price-chart-signals-downside-short-term-upside-continues-analysts]