Bitcoin (BTC) had a good start to the new year. Most analysts expect 2025 to be just as incredible, with Bitcoin predicted to reach $185,000 and beyond. A Look Ahead to Bitcoin in 2025, however, the future may be just as clearly bullish as expected, since sellers seem to be attempting to reestablish themselves in response to recent market activity, which might result in a significant price drop soon.
December Bitcoin Drop Shot Alert
Bitcoin reached around $108,000 in December before dipping below $94,000, its first monthly loss since August. Due to price indecision, the monthly chart showed a bearish “shooting star.” candlestick pattern, representing a huge gap between the high and the open for that period and a modest distance between the close and the open. Although the lower wick may be modest, the upper wick must be twice as large as the body. Bitcoin’s upper wick is four times larger than its body, while its lower wick is fairly small.
Bitcoin Shooting Star Portends Bearish Turn
The shooting star pattern suggests purchasers first drove prices up. Still, selling seized control at the highs and pulled prices back to the starting level, suggesting bearish sentiment has returned. The CMT Association Level III manual explains the psychological basis of the shooting star pattern.
The bears are potentially in control.”Price movement below the December low of $91,186 would suggest the shooting star’s arrival after a huge rise from $70,000 to above $100,000. This could indicate a negative turn. Bitcoin Shines in 2025, The Bulls defend this level. In bull markets, candles with longer top wicks marked the peak.
Future of Bitcoin under Fed Hawkishness
Risk assets face tough times ahead, and the latest shooting star’s cautious warning fits in. The key factors are a stronger dollar index, rising Treasury rates, and Fed hawkishness. If the Federal Reserve reverses its recent decision to propose fewer rate reductions for 2025, researchers predict a bullish wide trajectory for Bitcoin and risk assets.
A simpler 2025 prediction: higher. The November 5 events changed little. “February will be the best-performing month,” trader and analyst Alex Kruger said on X, adding that the Fed’s recent hawkishness is still holding back markets. “The Fed will swing back dovish sometime in Q1, with traders pricing more cuts back in,” Kruger said.
Summary
Predictions of $185,000 for Bitcoin in 2025 followed a successful 2024 when the cryptocurrency reached over $100,000. But a “shooting star” candlestick in December could mean prices are about to drop. A negative reversal can be signalled if Bitcoin falls below $91,186. A Look Ahead to Bitcoin in 2025, Problems arise for the market due to the Fed’s aggressive posture and a higher dollar. However, if the Fed decides to decrease rates, analysts anticipate a bullish trajectory, with February being particularly strong.
