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 ended the month below $94,000.

This two-way price action creates 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 shape of the shooting star shows that buyers initially pushed prices higher, but sellers began to take control near the highs, driving prices below the open, suggesting a possible return to bearish sentiment in 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 at the top of the previous bull market, candles with similar long upper shadow lines also appeared.

The cautious signal from the latest shooting star is consistent with the broader macroeconomic environment, which suggests that risk assets may face challenges. This has been driven primarily by recent hawkish signals from the Federal Reserve, rising Treasury yields, and a stronger U.S. dollar index.

Still, analysts remain confident that the Fed will reverse its recent decision to hint at fewer rate cuts in 2025, ensuring that the bullish trend for BTC and risk assets in general continues.