As the year draws to a close, Bitcoin’s price action remains relatively stable, paving the way for a potential bullish reversal come January. This optimistic prediction for the leading cryptocurrency arises from insights shared by crypto analyst Tony Severino, who identified a possible Doji formation. According to Severino, this pattern suggests that Bitcoin might experience an upward trend as we step into the new year.
Doji Formation Could Lead to a Bitcoin Price Rally
In a recent social media post, Severino highlighted how a Doji formation might trigger a Bitcoin price rally during the first two months of the upcoming year. He speculated that Bitcoin will conclude December with this formation, followed by robust price action in January for the cryptocurrency. The accompanying chart from Severino suggests that this momentum could extend into February.
A Doji, as explained by the crypto analyst, signifies a period of indecision in the market, where neither buyers nor sellers have the upper hand. The subsequent candlestick reveals the market’s decision, either through a strong continuation or a reversal. In the current scenario, Severino anticipates a definitive continuation in Bitcoin’s price movement.
Historically, a comparable Doji pattern has led to two months of upward movement before reaching a local peak for Bitcoin. Therefore, if history repeats itself, Bitcoin could enjoy a similar upswing between January and February 2025. One fundamental factor that might contribute to this strong continuation is the inauguration of Donald Trump, which could serve as a catalyst for Bitcoin’s upward trajectory.
Currently, BTCUSD is trading at $94,571, according to TradingView. Bitcoin has previously surged past $100,000 following Trump’s victory in the November US presidential elections. This rally could potentially continue as Trump assumes office as the first pro-crypto US president. Additionally, the establishment of a Strategic Bitcoin Reserve by the new administration could further bolster Bitcoin’s bullish momentum.
BTC Must Maintain Above Critical Level
Crypto analyst Ali Martinez has pointed out in another social media post that Bitcoin needs to stay above the $92,730 mark to avoid entering a precarious free-fall zone. His analysis indicates that if Bitcoin breaches this price level, it could potentially drop to the $70,000 range.
However, Martinez also suggested that a significant price drop might not necessarily be negative for Bitcoin. He stated that a 20% to 30% correction could be the most positive development for Bitcoin’s long-term growth. Furthermore, Martinez identified that invalidation levels for his bearish outlook include maintaining a close above $97,300 and achieving a daily close above $100,000.
As of the current writing, Bitcoin’s price is hovering around $94,400, marking a slight decrease of nearly 2% over the past 24 hours, according to data from CoinMarketCap.
