Bitcoin (BTC) Unstoppable: Will the Breakout Rally Continue?
With the stock market retreating as traders perhaps took profits coming into Wednesday’s FOMC meeting, Bitcoin jumped the gun, broke to the upside, and surged strongly on Tuesday. President Trump is teasing the market with a “very, very big announcement” to come. Will Bitcoin apply the afterburners?
While the Federal Reserve FOMC meeting has huge importance and implications for the economy, the market already knows that interest rates are to stay as they are. There is just the traditional Fed chairman speech to come after the rates announcement, that could send the market one way or the other.
An intriguing announcement to come …
That said, a rather intriguing announcement is due to be made by President Trump in the next few days that has the market keenly trying to figure out what this might be.
The President has a planned trip to Saudi Arabia, the UAE, and Qatar soon, and he has said that the announcement will drop before this. He teased reporters on the subject while he was meeting with Canadian Prime Minister Mark Carney at the Oval Office, saying:
“We’re going to have a very, very big announcement to make, like as big as it gets,”
He added:
“And I won’t tell you on what … and it’s very positive.”
He concluded by saying:
“It is really, really positive. And that announcement will be made either Thursday or Friday or Monday before we leave,” Trump added. “But it’ll be one of the most important announcements that have been made in many years about a certain subject, very important subject. So you’ll all be here.”
While President Trump said that the announcement wouldn’t necessarily be about trade, but that still leaves a huge amount of leeway for just about anything else. Therefore, this could result in another tailwind for the market, and of course, Bitcoin.
Strong surge for $BTC after breakout
Source: TradingView
The short-term time frame for $BTC shows the strong surge after the breakout of the converging trendlines. While the short-term Stochastic RSIs are all coming to their tops once again, the bulls will want to see one more little surge at least in order to make the higher high. This would see the price going to $98,000.
If on the other hand the price rolls over from here, the bulls will need to make sure a lower low is not put in below $93,375. Nevertheless, with the FOMC meeting several hours away, there is likely to be some extra volatility incoming, whether that be to the up, downside, or both.
Another big Bitcoin bull flag
Source: TradingView
When looking at the $BTC price in the weekly time frame, it has now become more apparent that the price action over the last few months has actually formed a bull flag. The original falling wedge pattern can be seen with the dashed line.
If this is a bull flag, and that is now looking more likely than not, a breakout would likely have a similar effect as the last one that occurred out of the preceding bull flag from March to November 2024. That one resulted in a more than $35,000 increase in price.
The massive amount of ‘noise’ in the market, primarily over the US trade wars, and a very uncertain economy, are probably exactly that. This has all likely been priced in by the market. Global liquidity is increasing, and will very likely continue to do so. Historically, Bitcoin has always thrived in this sort of environment. Why wouldn’t it continue to do so?
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.
