Bitcoin Surges 10% Despite Fed's Rate Pause

Bitcoin (BTC) has shown a significant bullish movement, breaking out of a six-month bull flag pattern. This breakout occurred despite the Federal Reserve's decision to keep interest rates unchanged and Chairman Jerome Powell's indication that the Fed is taking a "wait and see" approach to rate changes. Powell's remarks at the FOMC meeting highlighted the mixed economic outlook, with strong labor market figures contrasting with slower Q1 growth and a predicted inflation figure of 3% for 2025.

The Fed's stance, neither hawkish nor dovish, was politically significant as Powell dismissed President Trump’s call for immediate rate cuts, emphasizing that policy decisions would be based on economics rather than politics. This decision had little impact on Bitcoin's price, which surged out of the bull flag pattern, indicating a strong upward trend.

The 4-hour time frame for BTC shows a powerful surge out of the bull flag, with the price testing the 0.618 Fibonacci level before moving skyward. The Fibonacci levels, calculated from last Friday’s local high to Tuesday’s low, suggest that the price is heading towards the 1.618 Fibonacci level at over $100,000. This could attract significant retail interest back into the crypto market.

However, there may be a pullback when the price reaches $100,000, as short-term Stochastic RSIs are starting to top out. This could bring the price back to support levels at $99,000, $98,000, or even confirm the breakout at $97,000.

On the monthly time frame, the second bull flag, now in its sixth month of formation, has broken out. The price is potentially heading towards the 1.618 Fibonacci level at $102,000. Once confirmed above this level, the price could experience a significant upward surge, similar to the previous big bull flag breakout.

The Stochastic RSI and RSI indicators suggest a cross-up, which will be confirmed or denied by the end of May. If this surge occurs, it could be the last for Bitcoin in this particular bull market, as 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.