According to COINOTAG News on January 3rd, CoinDesk’s market expert Omkar Godbole reported that Bitcoin reached an unprecedented high exceeding $108,000 in December 2024 but concluded the month below $94,000. This volatility resulted in the formation of a bearish reversal candlestick pattern known as a “shooting star” on the monthly chart. This pattern is characterized by a long upper wick, showcasing a pronounced disparity between the high and the opening prices, combined with a small body indicating a negligible difference between the opening and closing prices. In Bitcoin’s case, the upper wick is nearly four times the body length, with an almost non-existent lower wick.
The presence of the shooting star pattern implies initial buyer enthusiasm that was swiftly countered by sellers, pushing the price below the open and signaling a resurgence of bearish sentiment in the cryptocurrency market. This pattern emerged following a substantial upward move from $70,000 to beyond $100,000, serving as a cautionary indication of a potential trend reversal. A drop beneath December’s low of $91,186 will verify this bearish scenario, establishing an essential threshold for bulls to defend.
Additionally, a comparable candlestick with an elongated upper shadow was recorded at the last bull market peak. The warning from the latest shooting star coincides with broader macroeconomic indicators that could challenge risk assets. These factors include the Federal Reserve’s recent hawkish posture, elevated bond yields, and a fortified US Dollar index. Yet, analysts retain optimism that the Fed’s approach towards a rate cut in 2025 may ultimately support a continued bullish trajectory for Bitcoin and other risk assets.