- Bitcoin is currently around $85,000, with traders concerned about a possible market drop if interest rates remain high.
- Historical patterns and a 150-year-old market cycle chart suggest BTC could reach new highs by 2025, but some analysts predict a slowdown.
- The Federal Reserve’s upcoming decision on interest rates may influence Bitcoin’s next move, with a possible rate cut in May supporting the market.
Bitcoin is at a critical point, probing significant levels that will determine its direction of travel. It is now about $85,000, with the market uncertain ahead of the Federal Reserve‘s announcement. Most traders are concerned that if interest rates remain high for longer, it may result in a market decline.
BTC past reveals that when it breaks above key resistance levels in a bull trend, it tends to keep going up. Yet recent price action has left investors confused as to what lies ahead.
Bitcoin’s Market Cycle and Future Predictions
Investor Lark Dewis recently posted a chart made 150 years ago by an Ohio farmer that has accurately predicted market cycles. This chart, which even predicted the 2008 crash beforehand, indicates 2026 as a “good year,” indicating that it could be a good time to take profits. The question now is if BTC ongoing cycle will persist until 2026 and whether it will make a new all-time high in 2025. In the meantime, CryptoQuant CEO Ki Young Ju is of the opinion that the bull run might be decelerating, and Bitcoin might experience lower or sideways action for the next six to twelve months.
Analysts’ Views and Interest Rate Impact
Analysts are not in agreement on Bitcoin’s prospects. Some are expecting new all-time highs in June 2025, but chart patterns indicate it may occur sooner. A rising wedge setup is at its end stage, so BTC may either breakout and rocket or be rejected and continue losing. BTC has already lost 30% from hitting new highs in January, which is normal in a bull market. Historically, Bitcoin has dropped more than 50% before recording new all-time highs.
In spite of some bearish expectations, Bitwise CIO Matt Hougan is confident that Bitcoin may hit $1 million by 2029. He cites previous trends when Bitcoin falls only to recover strongly later. He anticipates the same to happen in the future years as well. Currently, Bitcoin is quoting at about $83,500 with minimal price action awaiting the Federal Reserve’s announcement.
The Fed will probably maintain interest rates unchanged at 4.25%-4.5%, and that will cause uncertainty in the market. At the moment, the central bank is taking a conservative approach and offering no definitive guidance. If rates do not change, Bitcoin and the cryptocurrency market may witness upward movement. There are predictions of a very likely rate cut in May, which will encourage prices to go higher.
Also read : Gemini, Backed by Billionaire Winklevoss Twins Files for U.S. IPO
