Dutch analyst: Bitcoin’s ‘ugly day candle’ hints on further decrease

After a dip at the beginning of August, in which Bitcoin (BTC) traded around $ 112,000, the rate is now a bit higher. With a price of $ 118,600, it is not far away from its all-time high. Yet the Dutch analyst Michael van de Poppe warns: he sees a hugely “ugly” day candle on the BTC graph.

Analysts see the risk of test of $ 116,800

Van de Poppe is “not happy” with what he sees, he says on X. The Bitcoin Koers rose to the 122,000 dollars on Sunday night, but yesterday returned all the winnings. According to the Dutchman, this is a bad harbinger because it “removed all liquidity at the top”.

The race rose to a critical resistance for a moment, but then immediately fell back. This is often a sign that it is a false outbreak, and that there may be a further decline in the short term.

Given the current movements, the analyst does not exclude the fact that we will test the support level of $ 116,800. Currently, only a fall of 1.5 percent is needed to reach this level. If this test turns out to be unsuccessful, then we may expect further falls.

Further decrease risk due to ‘cme gap’

Analyst Ted also sees an important reason why both Bitcoin and Ethereum (ETH) may fall further. According to him, both coins still have a so -called ‘cme gap’ open. These are price holes on the Futures market of the Chicago Mercantile Exchange (CME), which arise when the market closes during the weekend and the price at the reopening opens considerably or lower than the lock on Friday.

At Bitcoin it is a difference of approximately $ 1,100 compared to the final race on Friday. That amounts to a level around $ 117,500. In general, the course often moves towards these ‘gaps’. For that reason, it is likely that BTC will fall a little further.

For Ethereum, the risk is even greater in the percentage sense. The race closed on Friday at $ 4,000, while the difference is currently almost $ 300. Here too, Ted expects the market to close the gap, which can mean a major correction.