Doji Formation Indicates Potential Two-Month Bitcoin Price Upside in 2025
The Bitcoin price is projected to experience a bullish reversal in January, following a period of subdued activity. This outlook is supported by crypto analyst Tony Severino, who identified a potential Doji formation indicating an upcoming uptrend for BTC.
Doji Formation Could Lead To New Year Bitcoin Price Rally
Severino, in an X post, suggested that the Doji pattern may result in a Bitcoin price rally during the first two months of the year. He anticipates BTC will close December with this Doji, followed by a strong continuation in January, potentially extending into February as shown in his chart.
A Doji indicates market indecision among buyers and sellers. The subsequent candlestick will reveal whether there is strong continuation or a reversal. Severino expects strong continuation for Bitcoin's price based on historical patterns where similar formations led to further upside before reaching a local top.
Historically, such Doji formations resulted in two months of upward movement, suggesting a potential rise through January and February 2025. Additionally, Donald Trump’s inauguration could further catalyze this trend, as past events saw BTC surging above $100,000 after Trump's election victory.
Trump’s pro-crypto stance may lead to the establishment of a Strategic Bitcoin Reserve, providing additional momentum for BTC.
BTC Needs To Hold Above $92,730
Crypto analyst Ali Martinez emphasized that Bitcoin must maintain a price above $92,730; a drop below this level could trigger a decline towards the $70,000 range, as illustrated in his chart.
Martinez also noted that a correction of 20% to 30% might not be detrimental, labeling it as potentially bullish for Bitcoin. He indicated that his bearish outlook would be invalidated if Bitcoin sustains a close above $97,300 or achieves a daily close above $100,000.
Currently, Bitcoin is trading at approximately $94,400, reflecting a nearly 2% decrease in the last 24 hours, based on data from CoinMarketCap.
Featured image from Reuters, chart from TradingView