Bitcoin News Today: Bitcoin forms bearish candlestick as price drops 2.6% below $119K

Bitcoin’s price movement on Monday has raised concerns among traders following the formation of what MN Trading Capital founder Michael van de Poppe described as an “ugly daily candle” on the daily chart [1]. Over a 24-hour period, Bitcoin fell 2.6%, dropping from $122,200 to approximately $119,000, marking a bearish signal for the market [1]. Van de Poppe noted the candlestick formation could indicate further weakness, with the price potentially testing the $116,800 level before resuming its upward trajectory [1]. If that level is breached, CoinGlass data suggests that roughly $1.63 billion in long positions could face liquidation [1].

The price decline came after a brief rally on Monday morning, when Bitcoin surged over 3.3% to $122,150, inching closer to its July 15 all-time high of $123,100 [1]. Traders had been optimistic about the possibility of new highs, with some suggesting that a decisive break above $126,000 could trigger a rapid price increase. However, the subsequent pullback has led to a more cautious outlook. Van de Poppe noted that Bitcoin “has taken all the liquidity on the highs and immediately inversed toward the range high resistance,” reinforcing the bearish interpretation of the chart [1].

At the time of publication, Bitcoin was trading at $118,881, according to data from Nansen [1]. While the price has retreated slightly from its recent peak, broader market sentiment remains cautiously optimistic. The Crypto Fear and Greed Index remained in the “Greed” territory at 68, down two points from the previous session [1]. This aligns with continued inflows into spot Bitcoin exchange-traded funds (ETFs), which recorded $178.1 million in net inflows on Monday for the fourth consecutive day, as reported by Farside [1].

Longer-term optimism is also evident among certain traders. Samson Mow, founder of Jan3 and a Bitcoin maximalist, predicts that a shift in capital from Ethereum back to Bitcoin could provide a near-term price boost for BTC [1]. However, not all analysts share this view. Tom Lee, co-founder of Fundstrat, believes Ethereum is in the midst of its “Bitcoin 2017 moment” and forecasts the asset could reach $16,000, a 272% increase from its current price of $4,300 [1].

The mixed signals from traders and analysts highlight the uncertainty in the market as Bitcoin continues to consolidate. While some see the current pullback as a temporary correction before a new all-time high, others view it as a warning sign of a potential deeper decline before the next bullish phase [1].

Source: [1] Bitcoin 'ugly daily candle' could signal drop below $117K (https://cointelegraph.com/news/bitcoin-price-chart-signals-downside-short-term-upside-continues-analysts)