Bitcoin May Have Bottomed, Could Rebound Toward $90,000
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.
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.
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.