#Bitcoin may consolidate#

The recent view that the Bitcoin market may enter a consolidation phase is supported by multiple analyses. The Matrixport weekly report points to macroeconomic headwinds and global liquidity changes as the main reasons. While ETF inflows remain steady, the Fed's hawkish stance could limit further Bitcoin gains. The report also suggests that Bitcoin's rally is more influenced by Fed policy than ETF launches. Technical analysis reveals a "shooting star" candlestick pattern, indicating that the medium-term uptrend may be nearing its end. With low implied volatility, options are considered an effective risk management tool. Traders can use call options to capture upside potential or put options to protect gains. Additionally, in the first week of 2025, Bitcoin prices fell from $102,000 to $91,000. Although they rebounded to $95,000, the weekly candlestick chart shows a bearish trend. Overall, macroeconomic conditions, Fed policy, and technical analysis all point to a potential consolidation phase for Bitcoin. Traders should be cautious about market volatility and utilize tools like options for risk management.