Although Bitcoin (BTC) steps into 2025 with high expectations after its record performance in 2024, analysts warn that BTC has now reached a critical stage.
Market analyst Omkar Godbole says Bitcoin needs to defend its December low of $91,186 to avoid confirming a downtrend.
Bitcoin managed to surpass its all-time high of $108,000 in December 2024, but its price fell sharply to below $94,000, marking its first monthly loss since August. This price action formed the “shooting star” candlestick pattern on the monthly chart, which is typically considered a bearish signal.
This pattern is characterized by a long upper wick, which indicates a significant price rejection near the highs, and a small body, where the open and close prices are close together. Bitcoin’s upper wick is almost four times the size of its body, indicating that sellers are dominating the market after buyers tried to push the price higher. “The shooting star is a sign that the bearish trend in the market is gaining strength, especially after Bitcoin’s rapid rise from $70,000 to $100,000,” Godbole commented.
According to Godbole, Bitcoin bulls should protect the December low at $91,186. If broken, it would confirm a downtrend reversal, potentially leading to further declines. Furthermore, historical data suggests that similar long upper-wick formations signal major bull market tops.