Alex Krüger, an economist and popular crypto analyst, explained how the US Federal Reserve’s stance in 2025 could serve as a tailwind for the ongoing Bitcoin rally. This comment from Krüger comes as BTC is up 4.34% from its January 1 swing low of $92,840. Bitcoin price today and trades at $3,456.1.

*bitcoin price updated as of 3 PM.

Economist Explains Key 2025 Tailwind For Bitcoin price Rally

As noted above, Alex Krüger, explained that the “timing of the Fed going back dovish” in 2025 could fuel Bitcoin price rally. A dovish Fed comment would mean that the interest rates could be slashed, triggering more borrowing and spending, aka a risk-on scenario. Such an outlook would mean that risky assets like Bitcoin, cryptocurrencies and stocks could shoot higher.

Krüger adds that Fed’s dovish comment in 2025 could disrupt crypto’s habit of forming a top around the end of first quarter. He supports this statement by adding that Bitcoin and cryptocurrency market would follow suit if “equities ramp up hard in March or April.”

He concludes his bullish X post by noting that the macro outlook “trumps” seasonality and Bitcoin’s popular four-year cycles.

Bitcoin Technical Analysis: Has BTC Price Rally Begun?

CME’s one-hour Bitcoin price chart shows a gap, extending from $94,495 to $94,970, created between December 31, 2024, and January 1, 2025. Typically, price fills these gaps via a retracement or pullback in an act of rebalancing. Hence, despite the recent run-up in the past 48 hours, Bitcoin could retrace lower to fill the aforementioned gap seen on the CME BTC price chart.

Moreover, the start and end of the day, week, quarter and year tend to witness added volatility, which is not just limited to cryptocurrencies but also the stock market. Hence, there is a high chance that Bitcoin retraces into the CME gap, stretching from $94,500 to $94,970.

This short-term retracement is unlikely to end the Bitcoin price recovery rally, which began at the start of a new year. Hence, investors can remain confident as the long-term bullish outlook and the recovery bounce remains intact.

However, if Bitcoin price fails to hold above the $93,000 support level, it could jeopardize the uptrend. If a daily candlestick closes below the said level, it would invalidate the bullish thesis and trigger a further correction. Bitcoin price prediction, in this instance, indicates a near-3% crash to $90,000.

Bitcoin Price Targets If BTC Dips Below $90,000

Over the past six months or so, the Bitcoin price has crashed at the start of every month. This correction sweeps the lows created at the end of the previous month. This drop is a great buying opportunity because every single sweep after the start of the new month has led to at least a 24% rally in the next three weeks or less. The highest rally BTC witnessed after such a deviation was in November, where the biggest crypto by market cap rose nearly 50%.

If history rhymes, then a drop below $90,000 is likely. Following this dip, if BTC rallies 24% from $90,000, investors can expect an all-time high of roughly $113,000. However, a 50% gain would put Bitcoin price at $135,000.

Bitcoin looks increasingly promising from a technical perspective. Economist Alex Krüger’s insights suggest that the US Federal Reserve’s stance could serve as a tailwind for the ongoing Bitcoin rally. The potential for a dovish Fed comment to disrupt crypto’s seasonal trends and fuel a risk-on scenario is a significant bullish indicator. Krüger notes that the macro outlook “trumps” seasonality and Bitcoin’s popular four-year cycles, making a strong case for a continued rally. From a technical analysis standpoint, Bitcoin price could hit $113K or $135K if history rhymes.

Crypto analyst Jelle has provided a bullish outlook for the Bitcoin price for the remainder of this market cycle. The analyst predicted that the flagship crypto will reach $140,000 and revealed when this price surge could likely happen.

When The Bitcoin Price Will Jump To $140,000

In an X post, Crypto Jelle predicted that the Bitcoin price could rally to $140,000 in the next three months. This came as the analyst highlighted a cup and handle pattern, which put BTC’s price target at this level.

Crypto analyst Titan of Crypto also suggested that Bitcoin could rally to $140,000 in the next three months. In an X post, the analyst shared an accompanying chart, which he tagged as the ‘Bitcoin 2025 Roadmap.’

The accompanying chart showed that the Bitcoin price could reach $140,000 at the start of the new year. However, this price is unlikely to mark the top for Bitcoin, as it could still surge to $150,000.

Other market experts have even provided a more bullish outlook for the flagship crypto. Engineer Ted Boydston predicted that BTC could hit $225,000, the biggest bull run for the flagship crypto.

Meanwhile, renowned finance author Robert Kiyosaki predicted that the flagship crypto will hit $350,000 in 2025. While it remains to be seen if the flagship crypto could reach such heights, fundamentals such as Donald Trump’s inauguration support a bullish continuation.

A Price Rebound Is Imminent

In an X post, crypto analyst Ali Martinez stated that the Bitcoin price could be preparing for a rebound. The analyst mentioned that Bitcoin is showing a bullish divergence on the hourly chart against the Relative Strength Index (RSI).

The analyst added that the percentage of Binance traders going long on BTC has increased from 53.12% to 64%. These traders are said to have a solid record of being right.

Martinez further stated that the Bitcoin price needs to break above $94,800 to confirm this rebound. A break above this level could send BTC to $95,300 or even $96,000.

On the flip side, the analyst warned that if Bitcoin drops below $93,600, the bull case is off the table as the flagship crypto could drop to $84,000 or even $70,000.

However, the bullish case is looking more likely. In another X post, the analyst revealed that there was a spike in Bitcoin’s Taker Buy/Sell ratio on the top crypto exchange OKX. This indicates a surge in aggressive buying, which is a sign of upward momentum ahead.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.