Bitcoin’s price action has seen a sharp reversal this week, trading below the $120,000 mark after earlier expectations of reaching new highs. According to crypto analyst Michael van de Poppe, a notable "ugly daily candle" on Monday, which saw Bitcoin drop 2.6% from $122,200 to approximately $119,000 within 24 hours, could indicate further downside.
Van de Poppe suggested that Bitcoin might retest the $116.8K level before any potential continuation upwards. Data from CoinGlass indicates that a further 1.75% decline to this level would put around $1.63 billion in Bitcoin long positions at risk of liquidation. He noted that Bitcoin had captured liquidity at its highs before reversing towards range-high resistance. This pullback follows an earlier Monday surge where Bitcoin climbed over 3.3% to $122,150, approaching its July 15 all-time high of $123,100. Some traders, like Rekt Capital, had speculated that a decisive break above $126,000 could trigger rapid price appreciation. Rekt Capital had previously suggested that Bitcoin might have limited price expansion remaining in the current cycle if historical patterns from 2020 were to repeat.
Despite these price fluctuations, market sentiment for Bitcoin has remained robust. The Crypto Fear & Greed Index currently sits at 68, still in the "Greed" territory, even as other cryptocurrencies like XRP and Solana experienced declines. Spot Bitcoin ETFs recorded a fourth consecutive day of inflows, totaling $178.1 million, according to Farside data. Samson Mow, founder of Jan3 and a Bitcoin maximalist, suggested that a potential rotation of funds from Ethereum to Bitcoin, as Ether prices rise, could further boost Bitcoin's upward momentum. However, this view contrasts with Fundstrat's Tom Lee, who recently posited that Ethereum is experiencing its own "Bitcoin 2017 moment" and could potentially reach $16,000, representing a significant increase from its current price.
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Source: Originally published at
Cointelegraph on Tue, 12 Aug 2025 06:07:50 GMT
Frequently Asked Questions (FAQ)
Bitcoin Price and Market Trends
Q: What caused Bitcoin's recent price drop?
A: Bitcoin experienced a reversal and traded below $120,000 after an earlier surge, influenced by a "weakening price movement" and a notable "ugly daily candle" on Monday, indicating potential further declines.
Q: What is the predicted short-term future for Bitcoin's price?
A: Analyst Michael van de Poppe suggests Bitcoin might test $116.8K before potentially continuing its upward trend.
Q: How much Bitcoin in long positions is at risk of liquidation if Bitcoin drops to $116.8K?
A: Approximately $1.63 billion in Bitcoin long positions would be at risk of liquidation.
Q: What is the significance of the "ugly daily candle" mentioned by Michael van de Poppe?
A: This refers to a sharp price drop after reaching highs, suggesting a potential reversal or correction in the market.
Q: What was the previous all-time high for Bitcoin mentioned in the article?
A: Bitcoin's previous all-time high was $123,100, reached on July 15.
Q: What is the "Crypto Fear & Greed Index" and what does its current reading signify?
A: The Crypto Fear & Greed Index is a sentiment indicator for the cryptocurrency market. A reading of 68 indicates "Greed," suggesting investor optimism despite recent price wobbles.
Q: What are spot Bitcoin ETFs and what do recent inflows suggest?
A: Spot Bitcoin ETFs are exchange-traded funds that hold Bitcoin directly. Recent inflows suggest continued institutional interest and confidence in Bitcoin.
Q: What is the "four-year crypto cycle" theory mentioned by Rekt Capital?
A: This theory suggests that cryptocurrency markets, particularly Bitcoin, tend to move in cycles of approximately four years, influenced by events like halving.
Market Sentiment and Other Cryptocurrencies
Q: How is market sentiment for Bitcoin currently?
A: Market sentiment for Bitcoin remains high, as indicated by the Crypto Fear & Greed Index still being in the "Greed" territory.
Q: Have other cryptocurrencies like XRP and Solana also experienced price drops?
A: Yes, XRP and Solana were mentioned as falling 3.94% and 5.90% respectively, indicating a broader market downturn affecting other altcoins.
Q: What are the predictions for Ethereum's price?
A: Fundstrat's Tom Lee believes Ethereum could reach as high as $16,000, indicating a strong potential for growth.
Crypto Market AI's Take
The recent price action of Bitcoin, showing a sharp reversal after failing to sustain new highs, is a classic example of market consolidation and resistance testing. While analysts like Michael van de Poppe point to potential short-term dips, the continued inflows into Spot Bitcoin ETFs highlight the underlying institutional demand. This dynamic often plays out in volatile markets, where short-term sentiment can shift rapidly. At Crypto Market AI, we leverage advanced AI models to navigate such complexities, aiming to identify robust trading opportunities amidst market fluctuations. Our platform offers insights into real-time market analysis and automated trading strategies, which can be particularly valuable when the market exhibits "ugly daily candles" or potential liquidity events. For those looking to understand the broader market context and how different assets might interact, our analysis on
AI-driven crypto market trends provides deeper insights into the forces shaping cryptocurrency prices.
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