Current position of Bitcoin ($BTC) and the wider macroeconomic conditions highlight some potential change in its price trajectory. In line with the statistics, January 2025 might witness a shooting star pattern. In addition to this, the noteworthy macroeconomic factors influencing Bitcoin’s future progress include interest rates and the upcoming Federal Reserve balance sheet.
Bitcoin to See Potential Shooting Star Pattern in January 2025
The data underscores the possibility of a shooting star pattern for Bitcoin. It is a classic sign of a price reversal at the peak of its uptrend. If the respective pattern emerges during January, it could indicate a diminishing bullish momentum.
This pattern could also pave the way for a likely correction phase resulting in a bear market creating the possibility of a free fall. This would mean that we have already hit the market top at $108,200. Keeping in view this possibility, the January candle will play a crucial role in determining Bitcoin’s price movement.
At the moment, the top crypto token is trading at $94,558.69. This price level shows a 1.16% price spike over the past twenty-four hours. On the other hand, Bitcoin has experienced a 3.52% price dip over the recent seven days. Apart from that, it has recorded a 6.88% decline in its price performance over the past month. Moreover, the 24-hour volume of Bitcoin displays a 38.69% slump at the $38.3B mark.
December 2024 Recorded Bearish Hammer Pattern for Bitcoin
Based on the historical data, December 2024 saw the formation of a bearish hammer pattern. This pattern usually underscores the completion of uptrend and the beginning of a downtrend. Though it can denote Bitcoin’s likely reversal to an uptrend, the wider bearish market scenario signifies a potential surge in selling pressure. Along with this, the anticipated shooting star pattern displays a sideways price movement.
Interest Rates, Fed Balance Sheet, and Monetary Policy to Impact Bitcoin’s Price Outlook
Other than technical overview, the macroeconomic conditions could also contribute to Bitcoin’s market position. In this respect, the Federal Reserve balance sheet will serve as a key factor. Additionally, the release of monetary policy is scheduled for the 28th and 29th of January. This will also be a decisive factor for Bitcoin’s trajectory.
Trump’s Inauguration Might Also Underscore a Pivotal Factor
Furthermore, the upcoming inauguration of Donald Trump on the 22nd of January could also impact the momentum as his pro-Bitcoin strategy has contributed a lot to Bitcoin’s recent bull market. However, overall, this month will majorly see sideways price movements. This development could end the monthly candle in green and will help to break the bearish pattern in formation. Always DYOR.