Bitcoin Faces a Race to Secure a Green 2025 Yearly Candle

Bitcoin (BTC) eyed weekend highs into Sundayโ€™s weekly close with the yearly candle in focus.

Key points:

  • Bitcoin sees an eerily calm weekend as analysis eyes a three-day bullish divergence locking in.

  • It may take until the new year for capital to redeploy and the BTC price situation to change.

  • Bitcoin is down 6% for the year, potentially marking a bearish post-halving record.

New year could bring $100,000 BTC price

Data from TradingView showed BTC price action nearing $88,000 after two days of barely any volatility.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Friday had seen familiar fakeout moves as liquidity hunts accompanied a record $24 billion options expiry event. As Cointelegraph reported, this was thought to be acting as a suppressing force on price.

Now, bullish arguments included a key relative strength index (RSI) divergence on three-day timeframes.ย 

โ€œBitcoin locked in a three-day bullish divergence, right on top of key support,โ€ trader Jelle wrote in an X post on the topic.ย 

โ€œThe previous two bottoms formed with 3-day divergences as well. Time for history to repeat?โ€

BTC/USD three-day chart with RSI data. Source: Jelle/X

Trader BitBull put faith in seasonality when it came to a BTC price rebound. Institutions, he argued, would begin allocating capital to “underperforming assetsโ€ in early January.

โ€œThis could trigger a breakout from this trendline and a move towards $100K will happen,โ€ he predicted Friday.

Trader and analyst Aksel Kibar was unsurprised by Bitcoinโ€™s range-bound behavior and lack of volatility given the sharp upside during Q3.

โ€œVolatility is cyclical,โ€ he told X followers.ย 

โ€œHigh volatility is now followed by low volatility until we find a clean chart pattern setup to capitalize on.โ€

BTC/USD one-day chart. Source: Aksel Kibar/X

Bitcoin yearly candle challenges four-year cycle

With days to go until the 2025 yearly candle close, Bitcoin still risked making bearish history.

Related: Bitcoin ETFs lose $825M in five days as US becomes ‘biggest seller’ of BTC

Currently down 6.1% year-to-date, BTC/USD was on track for its first โ€œredโ€ post-halving year in history.

This led some to argue that the concept of BTC price action moving in four-year cycles no longer matched reality.

Keith Alan, cofounder of trading resource Material Indicators, suggested that the yearly candleโ€™s color would be of major importance.ย 

โ€œWicks beyond key levels are to be expected – itโ€™s closes that matter most,โ€ he wrote on Christmas Day alongside a chart from one of Material Indicatorsโ€™ proprietary trading tools.ย 

โ€œKeeping with the holiday spirit, Iโ€™m most interested in whether or not we see a red or green candle to close Q4 and the Year, and Iโ€™ll be looking for new macro insights from Trend Precognition at the January open.โ€

BTC/USD 12-month chart. Source: Cointelegraph/TradingView

Alan said that the yearly open around $93,500 could still come in for a last-minute retest.

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