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Bitcoin Surges 10% as Traders Await Fed Decision

Coin WorldWednesday, May 7, 2025 9:09 am ET

1min read

Bitcoin (BTC) experienced a significant surge on Tuesday, breaking through resistance levels and rallying strongly. This movement came as the stock market retreated, with traders potentially taking profits ahead of the Federal Reserve's FOMC meeting scheduled for Wednesday. The Federal Reserve's decision to keep interest rates unchanged was widely anticipated, leaving the market to focus on the Fed chairman's speech, which could influence market sentiment.

Adding to the market's intrigue, President Trump hinted at a major announcement set to be made in the coming days. During a meeting with Canadian Prime Minister Mark Carney, Trump teased reporters about the upcoming revelation, describing it as "very, very big" and "very positive." He indicated that the announcement would be made before his planned trip to Saudi Arabia, the UAE, and Qatar, and could be one of the most important announcements in many years. While Trump did not specify the nature of the announcement, he suggested it would not necessarily be related to trade, leaving room for speculation about its potential impact on the market and Bitcoin.

Technical analysis of Bitcoin's short-term price action reveals a strong surge following the breakout of converging trendlines. The short-term Stochastic RSIs are approaching their peaks, and bulls are hoping for at least one more surge to achieve a higher high, potentially pushing the price to $98,000. However, if the price reverses from this point, bulls will need to ensure that a lower low is not established below $93,375. With the FOMC meeting approaching, increased volatility is expected, which could drive prices in either direction.

Examining the weekly time frame, Bitcoin's price action over the past few months has formed a bull flag pattern. This pattern, along with the original falling wedge pattern, suggests that a breakout could mirror the previous one from March to November 2024, which resulted in a price increase of over $35,000. The market's focus on US trade wars and economic uncertainty has likely been priced in, and with global liquidity on the rise, Bitcoin is poised to continue thriving in this environment.

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