BTC/USD: Bitcoin Consolidates as Boring Weekend Adds to Scary Monthly Chart Pattern

OG token has been forming a shooting star on the monthly chart. What is this pattern an indication for? Bad things, mostly.

• Bitcoin BTCUSD was under pressure to kick off weekly trading after a weekend dip saw prices touch $93,000 per coin, down from last week’s high of just under $100,000. The original cryptocurrency is once again throwing a curveball at digital asset enthusiasts as its price trajectory is looking scary. Especially when you pull up the monthly chart — a formidable shooting star is hanging over the chart, threatening to wreck portfolios left and right.
• What’s a shooting star? It’s a single candlestick that’s big enough to be a technical pattern on its own. By definition, a shooting star is a reversal candlestick pattern that typically forms at the top of a bullish trend. In Bitcoin’s case, the long upper shadow goes all the way to the token’s ultimate record of $108,000 hit earlier in December. The little lower shadow is the monthly low of $92,000 per coin. Is a trend reversal on the cards for January?
• It depends. While the indicator is a powerful tool to gauge the market’s sentiment, it’s no guarantee. There’s a whole sea of possible outcomes — prices could dip some more but then rocket higher, pulling a false breakout to the downside and acting as a bear trap. But they can also crumble under elevated selling pressure. There’s no crystal ball when it comes to interpreting technical patterns and sometimes you just need to go with your gut and make a bet in the direction you have conviction for.