With Bitcoin making a strong start to 2025, some predict the price could reach $185,000. However, some indicators suggest that this could be a challenging process.
In December, Bitcoin tested a record high above $108,000 before closing the month below $94,000, its first monthly loss since August. The move created a bearish candlestick pattern on the monthly chart called a “shooting star.”
The shooting star pattern is characterized by a long upper shadow and a small body. The upper shadow should be at least twice the length of the body, and the lower shadow should be almost negligible. In Bitcoin’s case, the upper shadow is almost four times the size of the body. This indicates that prices initially moved upwards, but then sellers stepped in, pushing the price below the opening level, and the market started to trend down again.
Analysts say that for this bearish signal to be confirmed, it will be necessary to watch whether BTC can drop below the December low of $91,186, which is a critical support that the bulls need to defend.
Macroeconomic factors and short-term risks
The message given by the shooting star formation also seems to be consistent with the current macroeconomic environment. The Fed’s recent hawkish signals, rising bond yields and a strengthening dollar index are putting pressure on risky assets.
However, analysts believe the Fed will back down from its signal of fewer rate cuts for 2025, which will support an uptrend for Bitcoin and risk assets.
Despite the short-term market challenges, crypto analyst Alex Kruger remains bullish on the long-term. “My forecast for 2025 is simple: Higher. No fundamental change since November 5. February will be the best performing month, but the Fed’s recent hawkish stance keeps markets under pressure in the short term,” he said.
Stay tuned