Bitcoin bottom forming as Fed eases, Trump softens on tariffs: Analyst
Bitcoin may have bottomed and could rebound toward $90,000 after US President Donald Trump signaled a willingness to ease tariffs and the Federal Reserve resisted short-term pressure last week, according to a crypto analyst.
“Bitcoin is attempting to form a bottom, supported by Trump’s recent shift toward ‘flexibility’ on the upcoming April 2 reciprocal tariffs, softening his earlier rhetoric,” 10x Research’s founder Markus Thielen said in a March 23 report.
The Federal Reserve signaled in its March 18-19 meeting that it would also “look past short-term inflationary pressures, laying the groundwork for potential future easing,” Thielen added.
“Powell’s mildly dovish tone suggests that the Fed’s put remains intact, providing further support for a recovery in stock prices.”
10x Research’s Bitcoin reversal indicators have turned bullish as a result, with Bitcoin’s (BTC) 21-day moving average now at $85,200, Thielen noted.
Bitcoin’s bottoming formations over the last two years. Source: 10x Research
He said these weekly reversal indicators have pulled back to levels where past bull markets have resumed, such as in September 2023 — spurred on by the Bitcoin exchange-traded fund narrative — and August 2024 as the US election neared.
“In short, the technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold.”
Thielen also noted that several altcoins are already breaking out of their downtrend channels and trading at more “attractive levels.”
Bitcoin is currently trading at $85,720, up 2.1% over the last 24 hours, CoinGecko data shows.
Meanwhile, Ether (ETH), Tron (TRX), and Avalanche (AVAX) have rebounded 4.3%, 6.4% and 8.9%, respectively, over the last week.
The crypto research analyst, however, expects to see “significant resistance” at the $90,000 mark for Bitcoin, should it reach that level.
Despite the more positive outlook, “no clear catalyst exists for an immediate parabolic rally” is in sight, Thielen said.
Related: Bitcoin ‘in position’ for first key RSI breakout in 6 months at $85K
He initially said Bitcoin wouldn’t drop below $73,000 — thereby avoiding a “deep bear market” — because the largest sum bracket of Bitcoin holders (wallets with 100-1000 Bitcoin) are likely family offices and wealth managers who are invested in Bitcoin for the long term.
He also noted that the US-based spot Bitcoin ETFs returned inflows for the first time last week since the last week of January.
“We expect Bitcoin ETF selling from arbitrage-focused investors to wind down, as the arbitrage opportunities have primarily been closed for weeks,” Thielen added.
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