**Bitcoin Price Set for New Heights as Fractal Patterns and Fed Rate Cuts Signal a 2025 Surge**
NOIDA (CoinChapter.com)—Recent movements in Bitcoin’s price have ignited a wave of optimism among traders, with a pivotal fractal pattern suggesting a possible bullish breakout. The current market dynamics bear a striking resemblance to the post-halving cycle of 2020, when Bitcoin entered a reaccumulation phase before embarking on a significant rally.
As the market gears up for a critical juncture in 2024, traders are keenly anticipating another substantial price increase that could elevate BTC values considerably.
**2024 Halving Fractal Points to a 2025 Bitcoin Surge**
The upcoming Bitcoin halving in 2024 has reignited interest in the cryptocurrency’s potential for notable price appreciation. Crypto analyst Rekt Capital has recently emphasized a fractal pattern that showcases parallels with the post-halving cycle in 2020.
After the May 2020 halving, Bitcoin spent 161 days in a reaccumulation phase before launching into a parabolic rally, which resulted in an impressive 427% price increase by early 2021.
Historical fractals from the post-halving period indicate substantial gains may be on the horizon for Bitcoin.
Rekt Capital proposed that Bitcoin could enter a similar reaccumulation phase following the April 2024 halving. If history is any guide, a breakout could occur around late 2024, with the most significant rally potentially not taking place until early to mid-2025. This mirrors how Bitcoin’s 2021 rally followed a comparable consolidation period.
In addition to the technical fractal analysis, broader economic factors are bolstering the bullish outlook for Bitcoin. On September 18, 2024, the Federal Reserve announced a 50 basis points cut to its benchmark interest rate, bringing it down to a range of 4.75%-5%. This move marks the first rate reduction in over four years.
This rate cut signals the onset of a new liquidity cycle, as reduced interest rates typically foster increased capital flow into risk assets like Bitcoin. Furthermore, Fed officials have hinted at additional rate cuts before the year concludes, potentially enhancing market liquidity even further.
With the central bank transitioning its focus from controlling inflation to fostering economic growth, Bitcoin’s macroeconomic landscape is becoming increasingly advantageous. Enhanced liquidity could attract institutional interest, and Bitcoin’s scarcity post-halving may further propel prices upward.
These macroeconomic elements, combined with the fractal pattern highlighted by Rekt Capital, suggest that the stage is being set for a significant Bitcoin rally in 2025. If the current reaccumulation phase unfolds as predicted, Bitcoin could exceed its previous all-time highs within the next year.
**Bitcoin Price Rally Losing Momentum**
In the meantime, following a recent bullish surge that pushed the BTC/USD pair above $63,000, Bitcoin bears appear to have taken control of the token’s price movements.
The BTC/USD price chart featuring RSI. Source: Tradingview
Bitcoin prices briefly soared above $64,700 on September 23 but subsequently retraced most of those gains, declining by 3.3% to reach a daily low of around $62,580. Although the token saw a slight recovery, bulls have struggled to maintain BTC prices above $64,000, suggesting a robust bearish presence at that level.
For the bullish trend to persist, Bitcoin would need to surpass the resistance level near $66,300. Successfully overcoming this immediate resistance could enable the BTC/USD pair to rally toward the next resistance point near $70,800.
Conversely, if the rally falters, Bitcoin prices may drop to the support confluence at the 20-day EMA (red) and 50-day EMA (purple) around $60,400. Furthermore, breaching this immediate support could compel Bitcoin to test the next support level near $57,000.
With the RSI nearing 61.89 on the daily charts, there appears to be limited room for a bullish run before the token enters overbought territory.