Bitcoin (BTC) Bull Flag Breakout: Next Price Surge Underway

Wednesday’s FOMC meeting resulted in interest rates staying the same, and Jerome Powell’s speech afterwards signalled that the Fed has no inclination towards preemptive rate cuts. All this had little effect on the Bitcoin price. Thursday has dawned bright for Bitcoin, and the king of the cryptocurrencies has surged out the top of a 6-month bull flag, ready to embark on the next upwards leg of the bull market. Powell takes “wait and see” approach to cuts The Federal Reserve is continuing with its “wait and see” approach to rate changes. The Fed chairman Jerome Powell said at Wednesday’s FOMC meeting that there were increased risks to inflation and unemployment given the tariffs war that was taking place. Powell said that the economic outlook was mixed, given that recent strong labour market figures were at odds with a predicted inflation figure of 3% for 2025, and slower Q1 growth. While Powell projected a generally neutral stance during the meeting – neither hawkish nor dovish, he laid down a marker politically by dismissing President Trump’s call for immediate rate cuts. He even drew applause when he pledged to set policy based on economics rather than politics. It may have been largely missed by those in the room that the Fed Chairman represents the interests of the banks, who are among the major shareholders of the Federal Reserve, which is a private, and not state-owned central bank. $BTC surges powerfully out of bull flag Source: TradingView The 4-hour time frame for $BTC shows the power of the surge out of this long-time giant bull flag. The uncertainty over the FOMC meeting brought the price back to test the 0.618 Fibonacci, before the bulls sent the price skyward. The Fibonacci levels, taken only from the move from last Friday’s local high, down to Tuesday’s low, indicate that the price is heading for the 1.618 Fibonacci at over $100,000. Reaching this nice round figure could then bring a lot of retail interest back into the crypto market. There may be some kind of pull back when $100,000 is reached, given that the short-term Stochastic RSIs are starting to top out. This could take the price back to support at $99,000, $98,000, or even to confirm the breakout at $97,000. Bitcoin on the brink of potentially one last price explosion Source: TradingView Zooming right out into the monthly time frame there is very little, if any, uncertainty. The second bull flag, just into its six month of formation, has now broken out. The price is possibly heading up to the 1.618 Fibonacci at $102,000. Once confirmed above this level, the price could rocket upwards, just like it did after breaking out of the previous big bull flag. The Stochastic RSI, second from bottom in the chart, shows that a cross up is taking place. Also, in the RSI, the indicator at the bottom of the chart, a cross up is being postured. Both indicators will confirm (or not) at the end of May. If this surge does occur, it may be the last for Bitcoin of this particular bull market, given that the traditional 4-year cycle ends this year. Nonetheless, Bitcoin is on the brink of a potential huge price surge that could take it to $155,000, or even $208,000, according to Fibonacci extension levels. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily