Bitcoin
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94,618 has shown resilience as it bounced back from a significant pullback to hold steady at the $94,000 range. Following a drop to $74,000 last week, the cryptocurrency has found support at crucial levels, reigniting market sentiment. All attention is now on the U.S. Federal Reserve’s upcoming meeting scheduled for May 6-7. Potential rate cuts by the Fed could increase global liquidity, acting as a catalyst for the cryptocurrency market. According to analyst Michaël van de Poppe, a confluence of technical indicators and macroeconomic signals is paving a solid path for Bitcoin to reach new highs.
Shaping Market Expectations with Fed’s Decision
The possibility of the Federal Reserve easing monetary policy has triggered a resurgence of risk appetite, extending from stock markets to commodities in recent weeks. The cryptocurrency market is also experiencing these effects; investors anticipate that a rate cut will expand money supply, hastening new capital flows into Bitcoin. Van de Poppe emphasizes that with monetary taps open, Bitcoin gains momentum not just through technical breakouts but through expanding liquidity as well.
However, some market observers remain cautious about potential rate changes. Certain professionals argue that inflation remains high, suggesting the Fed might not commence a rapid rate-cutting cycle. Nonetheless, the fact remains that the cryptocurrency ecosystem will remain sensitive to central bank policies throughout 2025, placing significant importance on the coming week.
Lastly, traders aiming to exploit post-Fed decision uncertainties are pivoting from leveraged positions to spot purchases as a risk mitigation strategy. This approach intends to minimize potential portfolio damage from sudden Bitcoin fluctuations.
Crucial Levels in Technical Charts
Daily and weekly charts distinctly illustrate that the $75,000 region has reversed from resistance to support. This threshold, breached during March’s hard sell-off, was retested and reinforced by late April. Analysts forecast that if the support line remains firm, the next targets are set at $87,000, followed by $92,000.
Van de Poppe highlights the $75,000 mark as a “psychological barrier,” bolstered by volume data affirming accumulation at this level. If prices stabilize above $87,000 in the short term, the market structure is considered primed for a new wave of upward momentum.
Conversely, in a scenario testing the bulls’ strength, losing the $75,000 mark could result in a retracement to the $68,000-$70,000 band. However, current momentum suggests that this potential remains weak for now, as Bitcoin trades at $94,375 while buyers maintain their influence heading into the weekly close.