Bitcoin ($BTC) Bearish Monthly Candle Close: What’s Next for BTC Price?

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As a seasoned researcher with years of market analysis under my belt, I’ve seen my fair share of bullish and bearish cycles. The recent $12,000 wick candle for Bitcoin is certainly not a sight for the bulls’ eyes. The repercussions could potentially extend another bearish month, but as we all know in crypto, past performance is no guarantee of future results.

Breakouts and fake-outs are part and parcel of trading Bitcoin, and Tuesday’s upward price action was no exception. It looked promising, reaching escape velocity, only to be halted by the bears. The market is a roller coaster, and we’re just along for the ride.

Looking at the short-term chart for Bitcoin, it seems we might be in for more sideways and downwards action. The price has been forced into a tiny space at the end of the triangle. The next move is uncertain, but given the December candle, I’m leaning towards sideways or downwards.

The monthly chart view suggests a possible major trend reversal if we consider the shooting star candle. However, the size of the top wick alone is enough to raise eyebrows. If the bears have their way, we might see Bitcoin forced below the ascending trendline, with a retest of the new bull market base at the low $70,000s on the cards. But remember, in crypto, anything can happen – even pumpkin farms mooning Dogecoin!

In conclusion, while it’s always tough to predict the exact direction of Bitcoin’s price action, I’d advise caution for now. As always, never invest more than you’re willing to lose, and remember that even a bear market can’t stop us from hodling on to our dreams!

Displaying a closing monthly candle with a $12,000 ‘wick’ (the high and low values) isn’t beneficial for Bitcoin optimists. Such a candle might lead to consequences for the BTC price, and it could signal another potentially bearish month ahead.

Breakouts and fake-outs

Each time Bitcoin appears to be ready for an uptrend after moving sideways and downwards, the price surge seems to abruptly halt. The upward momentum on Tuesday seemed promising, even breaking through the falling trendline, which suggested a potential rapid increase.

Despite a breakout, the volume didn’t increase enough for a substantial rise, allowing bears to swiftly sell off Bitcoin and push its price below the ascending trendline again. As of Wednesday, Bitcoin remains hovering beneath this line.

Based on my years of observing and analyzing market trends, I believe that the current situation with Bitcoin ($BTC) could be poised for a significant move soon. With two false breakouts, one to the upside and one to the downside, we’re currently at a standstill in terms of the price action – a 1-1 draw, if you will. However, what I’ve learned from my experience is that these periods of indecision often precede major shifts in the market.

As a trader who has navigated through multiple bull and bear cycles, I can say with confidence that staying patient during such moments is crucial. The triangle pattern that $BTC is currently tracking within suggests that we’re nearing the end of this consolidation phase, and a decisive move is on the horizon. It’s important to remain vigilant and be prepared for any potential developments in the market.

More sideways and downwards to come?

On the short-term Bitcoin chart, we see a progressive pattern of higher bottoms contrasted with steeper peaks of lower tops. Following two deceptive spikes, the price has been squeezed into a narrow zone at the triangle’s end. The market’s next action could be an increase, decrease, or consolidation. If it trends downwards, the ascending trendline dating back to 2021 can serve as a potential support level.

As I, a researcher, observe the technical aspects of the market, it appears that a downtrend or sideways movement might be more probable for December, considering the ominous-looking monthly candle. With minimal significant events occurring before January’s end, when Donald Trump is due to take office, the market may exhibit unpredictable price fluctuations due to uncertainty until then.

Major trend reversal?

As an analyst, I’m examining the monthly chart for Bitcoin ($BTC). The current candle could potentially be a “shooting star” formation, which traditionally indicates a possible reversal and the start of a new downward trend. However, it’s important to note that a shooting star typically has a smaller lower wick compared to the upper one. Regardless, the significant size of the top wick in this case is certainly worth paying attention to, as it could be a warning sign, even if it doesn’t perfectly fit the shooting star pattern definition.

As someone who has closely followed the cryptocurrency market for several years now, I have come to appreciate the significance of key technical indicators such as trendlines and Fibonacci levels. Based on my observation of Bitcoin’s (BTC) recent price movements and its long-term ascending trendline, it appears that the bears may eventually push the price below this trendline, potentially taking us down to around $85,000 – a level that coincides with the 0.382 Fibonacci retracement.

However, if history is any guide, a significant drop in BTC’s price could lead to a strong buying opportunity. In fact, I vividly remember a similar scenario back in late 2018, when the market dipped to the low $70,000s before rebounding strongly. So if we do see a retest of this level, I would not hesitate to consider it as a potential buying opportunity.

That being said, it’s important to remember that the cryptocurrency market is highly volatile and unpredictable, so it’s always crucial to approach investment decisions with caution and due diligence.

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2025-01-01 14:07