Bitcoin’s price action has been pretty flat lately, but some analysts are predicting a big jump in the new year.
A Doji and a Potential Rally
Crypto analyst Tony Severino spotted a “Doji” formation on the Bitcoin chart. A Doji is basically a pause in the market where buyers and sellers are equally matched. Severino thinks this Doji signals a potential rally in January and February 2025. He points to past instances where similar Dojis were followed by two months of price increases.
He believes this upcoming rally could be fueled by Donald Trump’s inauguration as president. Trump’s previous election win saw Bitcoin surge past $100,000, and Severino suggests that a similar effect could happen again, especially if Trump establishes a “Strategic Bitcoin Reserve.”
Holding the Line: A Crucial Price Point
Another analyst, Ali Martinez, highlights a critical support level for Bitcoin: $92,730. If Bitcoin falls below this level, Martinez warns of a potential drop to the $70,000 range.
However, Martinez also suggests that a 20-30% price correction might actually be a good thing for Bitcoin in the long run. He sees sustained closes above $97,300 or a daily close above $100,000 as signs that his bearish outlook is wrong.
Current Situation
At the moment, Bitcoin is trading around $94,400, slightly down for the day. Whether it holds above the crucial $92,730 level will be key to determining its short-term future.
