Bitcoin Price Eyes $100k as Michael Saylor Buys $1.42B BTC — Fed Decision Looms

Highlights
- MicroStrategy's recent Bitcoin purchase brings its total April buys to over 25,370 BTC worth $2.44 billion.
- Bitcoin's technicals signal an extended rally, with potential targets beyond $100k.
- The Fed meeting on May 7 and dollar index weakness could impact Bitcoin's price, with key support and resistance levels to watch.
Michael Saylor’s Strategy has doubled down on its Bitcoin bet, acquiring 15,355 BTC for $1.42 billion at an average price of $92,737—marking its third mega-purchase this April after buys of $555.8 million at $84,785/BTC and $285.8 million at $82,618/BTC. With a 13.7% YTD yield on its BTC holdings, Bitcoin price consolidates near $96k ahead of the May 7 Fed meeting.
Bitcoin Technicals Signal Extended Rally
An interesting observation on the daily Bitcoin price chart is the extended bull runs after the 1-day RSI has crossed above 70. Such instances have historically resulted in 40% to 70% up moves in the next 30 to 40 days.
As of May 3, Bitcoin’s daily RSI has just crossed the 70-mark. If history repeats, this could be the last time to accumulate Bitcoin below $100k.
Will Bitcoin price continue its ascent beyond $100k? Apart from technicals a macroeconomic policies, Trump’s trade war negotiations also impact the price of BTC.
Macro Factors Influencing BTC Price
- Fed Meeting Impact on May 7
-
- There is a 97.2% probability that the rates remain unchanged at the 425 to 450 basis point range, according to the CME FedWatch Tool.
- Potential outcomes:
- A dovish tone from the Fed could result in a bullish leg propelling BTC to revisit $100k.
- On the other hand, a hawkish surprise could lead to a Bitcoin pullback to $92.2k support. A breakdown of this level could lead to steep corrections to $88k and $85.4k.
- The Dollar Index (DXY) weakens
-
- As noted in previous CoinGape articles, the dollar Index, DXY, has collapsed nearly 11% in the past 100 days and current sits around 100.036. A further push into 100.820 could result in a steep rejection down to 91.
- Although the April Nonfarm Payrolls didn’t push DXY lower, the Fed’s decision on macroeconomic policy could drive US dollar lower. This development could propel Bitcoin price higher.
- Institutional Demand
-
- Spot Bitcoin ETF has noted $4 billions in net flows since March 25.
- Adding a tailwind to institutional accumulation is MicroStrategy’s total April buys reaching north of 25,370 BTC worth $2.44 billion.
Critical Bitcoin Levels to Watch
With Nonfarm Payrolls out of the way, another volatile event, the Fed meeting on May 7, looms, which could induce volatility. Here are some key levels to watch for Bitcoin (BTC).
Resistance Levels
- $108k (all-time high)
- $100k (psychological barrier)
Support Zones
- $92k to $93k
- $88.4k
- $85.8k
To conclude, the overall Bitcoin price prediction remains bullish with targets beyond $100k in 2025. However, investors need to be cautious as BTC could chop around before it embarks on an exponential uptrend.
Frequently Asked Questions (FAQs)
1. What recent Bitcoin purchase did MicroStrategy make?
2. What is the significance of the 1-day RSI crossing above 70 for Bitcoin?
3. What are the potential outcomes of the Fed meeting on May 7 for Bitcoin?
- Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy
- Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH
- Bitcoin, Ethereum Drag Broader Crypto Market Lower Ahead of FED Powell Speech
- Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption
- XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz
- Solana Price Prediction as SOL DAT Company Plans 5% Supply Acquisition—Analyst Targets $1,300 Breakout
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?