Bitcoin (BTC) began the significant data week with a decrease as discussions about a possible interest rate hike emerged following Friday’s employment data, along with major banks lowering their expectations for Federal Reserve rate cuts.
During this period, the price of BTC dropped below $90,000, but this decline was short-lived. By the end of the day, BTC had formed a classic “long-legged Doji candle” and returned to above $94,000.
Experts analyzing Bitcoin’s recent price movements pointed out that the long wick formed on the BTC chart indicated that the downtrend had exhausted itself and that buyers had finally overcome sellers.
Furthermore, experts noted that a similar doji candle, like the one experienced yesterday, had also appeared on December 16. During that time, the bulls failed to maintain the price at record levels above $108,000, resulting in a decline. They suggested that the doji candle on December 16 signaled the exhaustion of the uptrend and a subsequent deepening of the decline.
According to experts, this pattern is often seen as a potential signal for a bottom, leaving investors pondering whether Bitcoin’s price weakness is over or if further decline is to be expected.
However, experts emphasized that although yesterday’s price movements indicate a potential bottom for Bitcoin, it should remain stable above the daily peak of $95,900 for a while.
Andre Dragosch, the Head of Bitwise European Research, stated in his analysis that Bitcoin’s supply and demand dynamics strongly favor buyers, thus strengthening the bullish fundamentals.
Neal Wen, the Head of Global Business Development at Kronos Research, told Coindesk, “After Monday’s sharp decline, Bitcoin has rebounded from the $89,000 lows as investors await the US CPI report due on January 15. Major altcoins have followed suit, with many recovering in the past 24 hours.”
Wen emphasized that macroeconomic data will now play a more decisive role in Bitcoin prices, stating, “Market watchers are now focusing on signs of stability to determine whether further declines or increases are expected.”
*This is not investment advice.
