12/08/25

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Bitcoin experienced a notable decline following Monday’s trading session, with the cryptocurrency falling approximately 2.6% over 24 hours. The price moved from around $122,200 to roughly $119,000 before stabilizing. Market analysts suggest that this correction may signal further downside in the near term.

The recent downward move has prompted some traders to speculate on the possibility of Bitcoin testing lower support levels before resuming an upward trend. Current data indicate that a decline to approximately $116,800 could potentially trigger liquidations of roughly $1.63 billion in long positions. This level represents a key point of interest for traders closely monitoring market liquidity and sentiment.

Despite the intraday setbacks, overall market sentiment remains cautiously optimistic. Early Monday saw Bitcoin rally over 3.3%, reaching highs close to $122,150 and approaching its previous all-time high of $123,100 established in July. Such gains fueled expectations of a new cycle high, with some analysts suggesting that a firm break above $126,000 could accelerate Bitcoin’s upward momentum.

Market participants should remain vigilant, however, as recent price action has inverted from high resistance levels, suggesting a potential retest of support zones. Meanwhile, the Crypto Fear and Greed Index continues to reflect a ‘Greed’ sentiment threshold at 68, although trailing price corrections on some altcoins, including XRP and Solana, show market volatility persists.

Institutional interest remains steady, with spot Bitcoin exchange-traded funds (ETFs) posting four consecutive days of inflows totaling nearly $178 million. The ongoing capital flow into Bitcoin ETFs signifies sustained investor confidence amid short-term price fluctuations.

Looking ahead, some analysts believe that if Ethereum investors begin reallocating profits back into Bitcoin, it could bolster an upside move for the leading cryptocurrency. Conversely, others compare Ethereum’s recent rally to Bitcoin’s 2017 surge, suggesting it could reach as high as $16,000 in the coming months, representing a significant rally from current levels.

Overall, while Bitcoin faces periods of correction, market fundamentals and institutional interest suggest that the cryptocurrency remains positioned for potential upside in the medium term.