Bitcoin $96,525.2 (BTC) completed the year with a significant increase in value, reaching a six-digit value in 2024. A similar increase is expected for 2025. Analysts predict that the largest cryptocurrency could rise to $185,000 or even higher within the year. However, recent price movements show that uncertainty continues in the market.
The Price Drop in December Confused People
After reaching a record high of $108,000 in December, Bitcoin finished the month below $94,000. Thus, the first monthly loss recorded since August was experienced. Price movements in December are described in technical analysis as “shooting starIt resulted in the burning of a candlestick containing a bearish signal known as “.
The shooting star candle formation stands out as a candlestick with a long upper shadow. This candle formation It indicates that buyers tried to push prices up, but sellers took control and pushed the price below the opening level. BTC The upper shadow in this formation is four times as long as the body and the lower shadow is quite small. According to technical analysts, such formations usually indicate market tops.
Cryptocurrency market experts emphasize that it is critical for the price to remain above December’s lowest level of $91,186. A decline below this level could confirm a downtrend.
All Eyes on the Fed and Macroeconomic Developments
Developments in the global economy also affect Bitcoin’s short-term performance. US Federal Reserve(Fed’s) delay in interest rate cut signals puts pressure on the markets. especially increasing Treasury bond yields and getting stronger US dollar increases the pressure on risky assets. Analysts are of the opinion that all these factors may affect Bitcoin’s short-term price movements.
However, experts reveal a positive outlook in the long term. Closely followed cryptocurrency analyst Alex KrugerHe predicted that the markets would recover, saying, “The Fed will return to its dovish stance within the first quarter.” Kruger underlined that February will be the best performing month for Bitcoin.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
