Beware of that typical January Bitcoin crash

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Last Updated on 28 December 2024 by CryptoTips.eu

Although we are still counting down to New Year’s, it is already time to look forward to next month. For Bitcoin, January is just one of those months where you don’t really know whether it will be good or bad (6 times good, 6 times bad). In recent years it has been a hit and a miss. Last year, just after the approval of the Bitcoin ETF funds, we even took a sharp plunge.

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125% profit TYD

At the time of writing, Bitcoin was up just under 125% this year, which is actually phenomenally good. However, the month of January did not help, because a plus of some 0.62% wasn’t exactly a great month compared to the other 11. This was mainly due to that ‘sell the news’ dip, which Cathie Wood had clearly predicted on January 1, 2024.

Some analysts now also think that the optimism caused by the Trump election is already priced in and therefore predict a drop of the Bitcoin price in the weeks before January 20, 2025, the day that Trump will be sworn in.

If Donald Trump does indeed issue an executive order for a strategic Bitcoin reserve on day one of his presidency (as his fans predict), this will indeed give a major boost to the price… at from that moment.

But until that day we don’t really know what the price will do.

Head and shoulders

Famous analyst Aksel Kibar, who has been looking at and discussing charts for many years, fears that the current Bitcoin chart shows a possible ‘head and shoulders’ pattern, which means that would have to go down first (with support around the $80,000) before we can go back up.

Many followers agree. So pay close attention when the portfolios of many pension funds and investment companies are reshuffled early on next year. A gain of 125% is a very nice profit, and should normally mean that new investors will increase their investment. However, a realignment and profit taking after a very good year is also a possibility.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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