Bitcoin Breaks Out as Fed Holds Rates Steady

Following Wednesday’s Federal Open Market Committee (FOMC) meeting, where interest rates remained unchanged, Bitcoin has surged out of a six-month bull flag pattern, signaling the potential start of another explosive rally. While the Federal Reserve’s decision and Jerome Powell’s remarks offered little immediate market shock, the crypto market seized the moment, pushing Bitcoin into new bullish territory.

Fed Chair Powell reaffirmed a cautious stance, emphasizing a “wait and see” approach amid a mixed economic backdrop. He cited ongoing concerns over inflation and unemployment, exacerbated by global trade tensions, and rejected political pressure for immediate rate cuts. Notably, Powell dismissed calls from former President Trump for swift action, instead pledging to base decisions on economic data—an assertion that drew rare applause. Still, some observers pointed to the Federal Reserve’s private ownership structure, suggesting its independence may not be absolute.

Bitcoin, meanwhile, appeared undeterred. On the 4-hour chart, the cryptocurrency completed a textbook breakout from a massive bull flag, climbing after a brief retracement to the 0.618 Fibonacci level. With momentum building, analysts are watching for a move toward the 1.618 Fibonacci extension at over $100,000. If reached, that psychological milestone could draw renewed retail interest and further inflows into the crypto market.

Despite the strength of the move, indicators like the Stochastic RSI are nearing overbought territory, hinting at the possibility of a near-term pullback. Support levels are seen at $99,000, $98,000, and potentially $97,000, which could be tested before further gains.

On a broader monthly scale, the breakout confirms a second major bull flag pattern that has been forming since late 2023. Technical indicators suggest upward momentum is gaining, with key RSI crossovers likely to be confirmed by the end of May. Should the bullish scenario play out, Bitcoin could climb to $155,000—or even as high as $208,000—based on long-term Fibonacci projections.

With the four-year halving cycle drawing to a close in 2025, this latest breakout may represent the final surge of the current bull market. For now, Bitcoin appears to be on the verge of an historic run.