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It looks like bitcoin price will enjoy a bullish reversal in January next year, having maintained tepid price action to close this year. This bullish outlook for the flagship cryptocurrency emerged as a crypto analyst. <a target="_blank" href="https://bitcoinist.com/bitcoin-top-analyst-stop-rally/” target=”_blank” rel=”nofollow”>Tony Severino revealed a possible Doji formation, which suggested that btc could enjoy this uptrend in the new year.
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Doji Formation Could Lead to bitcoin Price Rally in the New Year
in a <a target="_blank" href="https://x.com/tonythebullBTC/status/1872711086404976670″ target=”_blank” rel=”nofollow”>x post, Severino suggested that a Doji formation could lead to a bitcoin price rally in the first two months of the new year. The analyst mentioned that he suspects btc will end December with the Doji and then January will show a <a target="_blank" href="https://bitcoinist.com/bitcoin-preparing-for-its-next-major-market-move/” target=”_blank” rel=”nofollow”>strong continuation for the flagship cryptocurrency. The accompanying chart shows that this strong continuation could extend into February.
The crypto analyst explained that a Doji represents a pause in the market due to the indecision of buyers and sellers. He added that the following candle shows market participants the decision the market has made through a strong continuation or reversal. In this case, Severino expects the next candle to show a strong continuation for the price of bitcoin.
Severino noted that a similar Doji in similar subwaves resulted in two more months of upside before local summit was in the price of bitcoin. Therefore, the cryptocurrency could enjoy two months of upside between January and February 2025 if history repeats itself. From a fundamental perspective, Donald Trump's inauguration is a factor that could cause this strong continuation.
The price of btc rose above $100,000 after Trump's victory in the November US presidential election. As such, the flagship cryptocurrency could continue this rally as Trump becomes the first pro-crypto US president. Additionally, the president-elect of the United States can create a <a target="_blank" href="https://bitcoinist.com/strategic-bitcoin-reserve-could-help-offset-us-debt/” target=”_blank” rel=”nofollow”>bitcoin Strategic Reserve when he takes office, which would provide further bullish momentum for btc.
btc needs to stay above $92,730
In a post x, crypto analyst Ali Martinez commented that bitcoin price should avoid falling below $92,730, as if that level is broken, it will be in free fall territory. The analyst's accompanying chart showed that bitcoin could fall to the $70,000 range if it breaks this $92,730 price level.
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However, in another x post, Martinez suggested that such a bitcoin price drop might not necessarily be bad. This came about when he stated that between 20% and 30% <a target="_blank" href="https://bitcoinist.com/current-bitcoin-correction-remains-within-historical-limits-the-impact-of-an-11-7-market-drawdown/#:~:text=bitcoin%20has%20shown%20remarkable%20resilience,to%20hold%20crucial%20support%20levels.” target=”_blank” rel=”nofollow”>price correction It is the most bullish thing that could happen to bitcoin. Meanwhile, Martinez stated that the invalidation levels for his bearish bitcoin outlook are a sustained close above $97,300 and a daily close above $100,000.
At the time of writing, bitcoin price is trading at around $94,400, down almost 2% in the last 24 hours, according to <a target="_blank" href="https://coinmarketcap.com/currencies/bitcoin/” target=”_blank” rel=”nofollow”>data from CoinMarketCap.
Featured image from Reuters, chart from TradingView
