The Bitcoin price is expected to experience a bullish reversal in January 2022, following a period of tepid price action at the end of this year. Crypto analyst Tony Severino has indicated that a potential Doji formation could lead to a rally in the first two months of the new year. The Doji represents a pause in the market due to indecision from buyers and sellers, with the following candlestick indicating the market’s decision through either a strong continuation or a reversal. Severino believes that the Bitcoin price will show a strong continuation in January and February, potentially reaching new highs.
Severino pointed out that similar Doji formations in the past have resulted in two more months of upside for the Bitcoin price before a local top was reached. He believes that history could repeat itself, leading to a positive trend for BTC in early 2022. One of the factors that could contribute to this bullish momentum is the inauguration of Donald Trump as the US president. Trump’s victory in the November elections led to a rally in the Bitcoin price, and his pro-crypto stance could further support the cryptocurrency market. There is speculation that Trump may establish a Strategic Bitcoin Reserve when he takes office, which could drive the price of BTC even higher.
However, in order to maintain this bullish momentum, the Bitcoin price needs to hold above the $92,730 level, according to crypto analyst Ali Martinez. Martinez warned that if this level is breached, Bitcoin could enter free-fall territory and potentially drop to the $70,000 range. Despite this risk, Martinez suggested that a 20% to 30% price correction could actually be beneficial for Bitcoin in the long term. He outlined the invalidation levels for his bearish outlook, which include a sustained close above $97,300 and a daily close above $100,000.
As of the latest data from CoinMarketCap, the Bitcoin price is currently trading around $94,400, showing a 2% decrease in the last 24 hours. The market remains volatile, and investors are closely monitoring price movements and key support levels to gauge the future direction of the cryptocurrency. The upcoming months, particularly January and February, could be crucial for Bitcoin as it seeks to maintain its upward trajectory and establish new highs. Traders and analysts will be watching closely to see if the predicted bullish reversal materializes and propels the Bitcoin price to new heights.
