Bitcoin (BTC) 
$97,886 completed 2024 with significant price appreciation, reaching six-figure levels, and similar gains are anticipated for 2025. Predictions suggest that the leading cryptocurrency could rise to as high as $185,000 within the year. However, recent price fluctuations indicate ongoing uncertainty in the market.
December’s Price Drop Confuses Traders
In December, Bitcoin hit a record high of $108,000, but the month ended below $94,000, marking its first monthly loss since August. The price movement in December resulted in a candlestick formation known as a “shooting star,” which signals a potential decline in technical analysis.
The shooting star formation is characterized by a long upper shadow, indicating that buyers attempted to push prices higher, but sellers regained control and pulled prices below the opening level. For BTC, the upper shadow of this formation is four times the length of the body, with a relatively small lower shadow. Technical analysts believe such formations often indicate market peaks.
Crypto market experts emphasize the importance of Bitcoin remaining above its December low of $91,186. A drop below this level could confirm a downward trend.
Attention Shifts to Fed and Macroeconomic Developments
Global economic developments are also influencing Bitcoin’s short-term performance. The Federal Reserve’s delay in signaling interest rate cuts is putting pressure on the markets. Specifically, rising Treasury yields and a strengthening U.S. dollar are increasing pressure on riskier assets. Analysts believe all these factors could impact Bitcoin’s short-term price movements.
Nevertheless, experts project a positive long-term outlook. Notably, crypto analyst Alex Kruger stated, “The Fed will likely return to a dovish stance within the first quarter,” predicting a market recovery. Kruger highlighted February as the month where Bitcoin could perform best.
