Doji Formation On Bitcoin Chart Suggests BTC Could See 2 Months Of Upside In The New Year

Scott Matherson

5 months ago

3 mins read

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The Bitcoin price looks set to enjoy a bullish reversal in January next year, having maintained a tepid price action to close out this year. This bullish outlook for the flagship crypto came as crypto analyst Tony Severino revealed a potential Doji formation, which suggested that BTC could enjoy this uptrend in the new year.

Doji Formation Could Lead To New Year Bitcoin Price Rally

In an X post, Severino suggested that a Doji formation could lead to a Bitcoin price rally in the first two months of the new year. The analyst mentioned that he suspects BTC will end December with the Doji and then January shows a strong continuation for the flagship crypto. His accompanying chart showed that this strong continuation could extend into February.

The crypto analyst explained that a Doji represents a pause in the market due to indecision from buyers and sellers. He added that the following candlestick shows market participants the decision the market has made through strong continuation or a reversal. In this case, Severino expects that the following candlestick will show a strong continuation for the Bitcoin price.

Severino noted that a similar Doji at similar subwaves each resulted in two more months of upside before a local top was in for the Bitcoin price. Therefore, the crypto could enjoy two months of upside between January and February 2025 if history repeats itself. From a fundamental perspective, Donald Trump’s inauguration is one factor that could spark this strong continuation.

BTCUSD currently trading at $94,571. Chart: TradingView

The BTC price rallied above $100,000 after Trump’s victory in the November US presidential elections. As such, the flagship crypto could continue this rally as Trump becomes the first pro-crypto US president. Moreover, the US president-elect may create a Strategic Bitcoin Reserve when he takes office, which would provide more bullish momentum for BTC.

BTC Needs To Hold Above $92,730

In an X post, crypto analyst Ali Martinez remarked that the Bitcoin price needs to avoid dipping below $92,730, as if that level breaks, it will be in free-fall territory. The analyst’s accompanying chart showed that Bitcoin could drop to the $70,000 range if it breaks this $92,730 price level.

However, in another X post, Martinez suggested that such a Bitcoin price drop might not necessarily be bad. This came as he stated that a 20% to 30% price correction is the most bullish thing that could happen to Bitcoin. Meanwhile, Martinez stated that the invalidation levels for his bearish Bitcoin outlook are a sustained close above $97,300 and a daily close above $100,000.

At the time of writing, the Bitcoin price is trading at around $94,400, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Reuters, chart from TradingView

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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