- Bitcoin seems to be gathering momentum to cross $100k.
- Strong chart patterns, higher open interest, upcoming FOMC meetings, and corporate buying have been pushing Bitcoin higher.
- Going forward, Bitcoin may encounter resistance near $85k and $95k before recovering above $100k.
Bitcoin has been showing very strong signs of an upcoming rally. Chart experts attribute this rally to strong price patterns amid strong fundamentals. Another reason for this expected rally seems to be corporate buying based on the strong possibility of a rate cut in the May 6-7 FOMC meeting.
Table of Contents
1. Technical Charts Indicate Breakout
Two chart experts, both of whom are known for their high accuracy are bullish on Bitcoin undergoing a recovery rally in the next few weeks.
Ali Martinez Shows Bitcoin Crossing 50D SMA
Crypto chart expert Ali Martinez thinks Bitcoin might cross above its 50 SMA followed by its 200 SMA.
Bitcoin is about to move above its 50-day simple moving average (SMA), an event that occurs only when Bitcoin’s short-term momentum has been increasing. This momentum increase is critical in helping Bitcoin break out of its bearishness.
Above the 50 SMA, Bitcoin is expected to encounter a resistance at $87,250. Upon conquering this resistance, Bitcoin might rise further towards $94,100.
Rekt Capital Expects Bitcoin to Start a Rally After $86,900
Rekt Capital, one of the most accurate analysts having correctly forecasted Bitcoin’s pre-halving and post-halving behavior in 2024, now thinks that beyond $86,900 Bitcoin might start another rally towards $93,700.
2. Open Interests Surge
In the last 30 days, Bitcoin’s Futures open interest (OI) increased by 30% from $45 billion to $58 billion. This rise in OI is oftentimes a precursor to the rising demand for Bitcoin.
Data from Coinglass clearly captures this rise between March 12 and April 13.
Open Interest is used as an indicator of the market’s participation level in any crypto or stock. It is believed that a higher OI is a result of greater market participation.
3. Fed’s Next FOMC Meeting on May 6-7
The US Fed is expected to cut interest rates by at least 0.25% in its upcoming FOMC meeting on May 6-7, 2025. The possibility of a rate cut is higher this time due to lower inflation in March 2025 (at 2.4%).
This interest rate cut is expected to help crypto and stock markets recover from a liquidity crisis that was present in the first quarter of 2025 (Jan – Mar).
In its last FOMC meeting (March 18-19), the US Federal Reserve disclosed that it has stopped quantitative tightening (reducing money in the economy) and would begin quantitative easing (increasing money in the economy via lowering interest rates).
4. Strong Corporate Buying
In the last month, crypto corporates like GameStop, Strategy, Metaplanet, Marathon Digital, and many smaller players have bought at least $3 billion worth of Bitcoin, with additional plans to purchase at least $20 billion more in 2025.
