In recent analyses, Bitcoin appears to be solidifying its position after potential downward trends. According to crypto analyst Markus Thielen of 10x Research, Bitcoin has likely bottomed out and could witness a rebound targeting the elusive $90,000 mark. Two significant factors appear to be influencing this shift: a softened approach from U.S. President Donald Trump regarding tariffs and a more accommodating stance from the Federal Reserve.
Thielen pointed out in his March 23 report that Trump’s willingness to adopt flexibility in the upcoming tariffs represents a pivotal change in sentiment. This has built a foundation for Bitcoin’s recovery. Concurrently, the Federal Reserve’s recent decision during its March 18-19 meeting to prioritize long-term stability over immediate inflationary pressures indicates a potential easing in monetary policy, further fortifying the market.
“Powell’s mildly dovish tone suggests that the Fed’s put remains intact, providing further support for a recovery in stock prices.”
As a result of these economic indicators, 10x Research’s Bitcoin reversal indicators have taken a bullish turn. The current 21-day moving average for Bitcoin stands around $85,200. Thielen emphasized that these weekly indicators have aligned with historical precedents where previous bull markets commenced, notably in September 2023 and August 2024, as the U.S. election approached.
“In short, the technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold.”
Another noteworthy observation is that various altcoins have started to break out from their downtrend channels, offering promising investment opportunities. Presently, Bitcoin is trading at approximately $85,720 following a 2.1% increase over the past 24 hours, with other cryptocurrencies like Ether, Tron, and Avalanche also experiencing healthy rebounds.
Despite the optimistic outlook, Thielen suggests caution as significant resistance is anticipated at the $90,000 threshold. He underlined that, while the market’s technical indicators are looking favorable, there is no clear catalyst present that might trigger an immediate parabolic rally.
In a broader context, Bitcoin’s resilience is bolstered by the behavior of long-term holders, primarily familial offices and wealth managers who possess substantial amounts of Bitcoin. These entities are less inclined to engage in panic selling, thereby providing stability to market dynamics.
Moreover, recent inflows into U.S.-based spot Bitcoin ETFs mark a positive shift, as such inflows had not been seen since January. This suggests a reduction in selling pressure from arbitrage-focused investors, further indicating a more robust market environment.
As the cryptocurrency landscape continues to evolve, all eyes will be on economic policies and market movements that could either support or challenge this budding upwards trend.
