Bitcoin (BTC) Will Reveal Its Interest Rate Decision on May 7, 2025. Let's Explore 5 Cryptocurrencies Showing Key Signals

Bitcoin is currently trading near $93902, reflecting a cautious stance ahead of the U.S. Federal Reserve's interest rate announcement on May 7, 2025.

The U.S. Federal Reserve will reveal its interest rate decision on May 7, a pivotal moment that could swing the cryptocurrency market. As anticipation builds, five cryptocurrencies are showing key technical signals.

1. Bitcoin

Bitcoin is currently trading at around $93,900 as it tests crucial support just below the 50-period Exponential Moving Average (EMA) in the 4-hour chart. This EMA, currently at $94,853, has historically served as a short-term trend guide, and Bitcoin's struggle to hold above it signals possible weakness in the near term.

At the same time, the Relative Strength Index (RSI) stands at 37.13, remaining below the signal line (45.84) and the neutral 50 zone. This RSI behavior suggests a decline in bullish momentum and increasing selling pressure. In previous sessions, RSI dips below 40 were often followed by deeper price corrections, especially when accompanied by low-volume recovery attempts.

The chart also shows a potential "Flag and Pole" continuation pattern, typically signaling a bullish setup, beginning to form after the strong rally in late April. This rally saw Bitcoin soar from under $84,000 to a peak above $96,000.

Since then, prices have moved sideways to slightly lower, forming a consolidating "flag." If the pattern completes with a high-volume breakout, the next upside target lies above the $100,000 mark. However, Bitcoin must first reclaim the $96,500-$97,000 resistance zone, which coincides with the upper range of the flag structure.

Standard Chartered's head of digital assets research, Geoff Kendrick, anticipates Bitcoin to reach a new all-time high of $120,000 by the end of Q2 2025. His prediction is driven by macroeconomic uncertainty, especially regarding interest rates and recessionary risks, as well as the increasing adoption of Bitcoin by institutions as a non-correlated store of value.

Volume analysis on the chart also shows a recent decline, suggesting that market participants are holding back until the Fed clarifies its policy stance. With Bitcoin's dominance still above 53% and stablecoin inflows increasing, many traders are positioning defensively, expecting a volatile reaction post-announcement.

If Bitcoin breaks below $93,700 with sustained volume, the next support may appear at around $91,000 and $89,000. Conversely, if buyers regain momentum and push BTC above the $96,500 threshold, it could trigger a swift move toward the psychological $100,000 mark.

2. Ethereum

Ethereum is currently trading at around $1,797, having lost its hold on the $1,800 level as selling pressure increases. The 4-hour chart shows ETH dropping below the 50-period Exponential Moving Average (EMA), which is now acting as short-term resistance at $1,808. This shift signals growing bearish momentum.

The Relative Strength Index (RSI), at 42.49, remains below its signal line, confirming weaker buyer interest. Recent price action shows multiple failed attempts to maintain a stand above the EMA, highlighting the trend reversal. Additionally, trading volume has decreased, suggesting hesitation among participants.

On May 7, Ethereum's Pectra upgrade will go live, aiming to improve staking and validator interaction. However, the price response remains muted as macro uncertainty ahead of the Federal Reserve's rate decision weighs on the broader crypto market.

Ethereum experienced a 47% gain during 2024, a slower pace compared to previous cycles. It has also trailed Bitcoin and Solana in recent months, leading to a decrease in its dominance across major DeFi sectors. This relative weakness limits bullish conviction, especially as key technical levels break.

If ETH fails to recover $1,808 soon, the next visible supports lie at around $1,740 and $1,700. Reclaiming the EMA and pushing above $1,850 would be necessary to signal renewed upside momentum. Until then, pressure remains on the downside as traders await this week's policy signals.

3. Solana

Solana is currently trading at approximately $144, showing signs of consolidation after a strong rebound from April lows. Despite bullish forecasts that price may hit $600 by the end of 2025, Solana has struggled to break past a critical resistance level at $155. This level serves as both a psychological and technical barrier in past cycles.

The rejection at this zone follows a substantial rise in trading volume in late April, which propelled SOL from below $130 to over $150. However, price momentum has slowed, and recent candles display smaller bodies with

News data source: kdj.com

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