Bitcoin (BTC) started the critical data week with a decline as the possibility of a rate hike began to be discussed after Friday’s employment data and major banks lowered their expectations for Fed rate cuts.
At this point, the BTC price fell below $90,000, but this decline was short-lived and by the end of the day, BTC had made a classic “long-legged Doji candle” and returned to above $94,000.
Experts evaluating Bitcoin’s recent price movements said that the long wick formed yesterday on the BTC chart showed that the downtrend was exhausted and buyers finally overcame sellers.
Experts stated that a similar doji candle to the one experienced yesterday was also seen on December 16, when the bulls failed to keep the price at record levels above $ 108,000 and a decline occurred, and said that the doji candle on December 16 was a sign that the uptrend was exhausted and the decline deepened afterwards.
According to experts, this pattern is often seen as a potential bottom signal, with investors looking for the answer to the question, “Is Bitcoin’s price weakness over, or is there more decline to come?”
At this point, experts said that although yesterday’s price movements indicate a potential bottom in Bitcoin, it should remain stable above the daily peak of $95,900 for a while.
Bitwise European Research Head Andre Dragosch stated in his analysis that Bitcoin’s supply and demand dynamics are strongly in favor of buyers, and this situation strengthens the bullish fundamentals.
“After Monday’s sharp decline, Bitcoin has rebounded from the $89,000 lows as investors await the US CPI report due on January 15,” Neal Wen, head of global business development at Kronos Research, told Coindesk. “Major altcoins have followed suit, with many recovering in the past 24 hours.”
Stating that macroeconomic data will be more decisive in Bitcoin prices from now on, Wen said, “Market watchers are now focusing on signs of stability to see further declines or increases.”
*Not investment advice
