Bitcoin’s (BTC) price has been hovering around the $28,500 mark since the beginning of May as investors showed caution ahead of the Federal Open Market Committee (FOMC) policy meeting on Wednesday, May 3.
With that being said, the crypto bear market may be coming to an end as Bitcoin forms a “super BULLISH pattern,” according to a popular Twitter chart pattern analyst Trader Tardigrade.
In his tweet on May 3, Trader Tardigrade shared a Bitcoin price chart showing that the cryptocurrency has formed a rising wedge pattern at the end of its recent downtrend. The rising wedge is a pattern used to identify potential trend reversals.
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After forming the pattern, Bitcoin broke above the upper trendline and the horizontal resistance level, Trader Tardigrade noted.
The trading expert’s post also includes Bitcoin’s chart from 2015, when the cryptocurrency formed the same pattern, a move that was followed by a major breakout to the upside.
Investors eyeing a Fed rate decision
BTC lost some of the gains that it saw last month after exceeding the psychological $30,000 mark, fueled by investors’ hopes that the Federal Reserve could stop its aggressive monetary policy tightening soon. This was the first time Bitcoin rose to that level since June 2022.
But the largest crypto token lost around 5% of its value since then as markets brace for another 25 basis points (bps) interest rate increase on May 3. However, as suggested above, many believe this could be the Fed’s last rate hike for now, adding further support for BTC’s bullish predictions.
Bitcoin’s recent price action
At the time of the writing, Bitcoin stood at $28,620, up around 2% in the past 24 hours. On a weekly chart, the cryptocurrency saw a slight drop of 1.1%.
Additionally, a price forecast by PricePredictions’ machine learning algorithm suggests that BTC could drop slightly further by the end of May and end the month down at $28,265. The prediction implies a 1.24% slip from the current price levels.
Finally, Bitcoin reached a new record of 682,280 daily transactions on May 1, marking a significant increase of 255% from its previous all-time high of 192,000 it achieved on December 14, 2017.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
