According to BlockBeats, on January 3, CoinDesk market analyst Omkar Godbole said that Bitcoin hit an all-time high of more than $108,000 in December 2024, but closed below $94,000 at the end of the month.
This two-way price action has formed a bearish reversal candle pattern known as a “shooting star” on the monthly chart.
This pattern is characterized by a long upper shadow, reflecting a significant gap between the high and the opening price, and a small candle body, indicating a small gap between the opening and closing prices. The upper shadow needs to be at least twice the size of the real body, while the lower shadow is usually very short or even non-existent. In the case of BTC, the upper shadow is almost four times the size of the real body, and the lower shadow is barely there.
The shooting star shape suggests that buyers initially pushed prices higher, but near the highs sellers began to take control, pushing prices down below the opening price, suggesting bearish sentiment may have returned to the market.
The shooting star appeared after a significant uptrend from $70,000 to over $100,000, warning of a possible bearish reversal. This reversal will be confirmed if the price falls below the December low of $91,186. This is a key level that bulls need to hold.
It is worth noting that similar candlestick charts with long upper shadows have appeared at the top of previous bull markets.
The cautious signal sent by the latest shooting star line is consistent with the broader macroeconomic environment, which suggests that risk assets may face challenges. This is mainly driven by the recent hawkish signals from the Federal Reserve, rising Treasury yields and a stronger US dollar index.
Nonetheless, analysts remain confident that the Fed will reverse its recent decision to hint at fewer rate cuts in 2025, ensuring the continuation of the bullish trend for BTC and risk assets in general.

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