Bitcoin bottom formed when the Fed of America loosened, Trump softened on tariffs

According to an analyst, Bitcoin may have hit the bottom and is recovering to $90,000, thanks to signals of readiness to reduce tariffs from U.S. President Donald Trump and the resilience of the Federal Reserve (Fed) against short-term pressures over the past week.

"Bitcoin is attempting to find a bottom, driven by the recent change in President Trump's policy regarding a more flexible approach to the expected counter-tariffs on April 2, somewhat easing his previous hardline statements," said Markus Thielen, founder of 10x Research, in a report on March 23.

The Fed hinted in the meeting on March 18-19 that they would also "not solely focus on short-term inflation pressures, laying the groundwork for potential easing in the future," Thielen added.

"Powell's somewhat moderate tone shows that the Fed's commitment remains firm, providing additional support for the recovery of stock prices."

The Bitcoin reversal indicators from 10x Research have shifted to a positive trend, with the current 21-day moving average (MA) of Bitcoin at $85,200.

The bottom formations of Bitcoin over the past 2 years | Source: 10x ResearchHe noted that these weekly reversal indicators have returned to levels from which the bull market previously recovered, such as in September 2023 driven by the Bitcoin ETF fund story and August 2024 ahead of the U.S. presidential election.

"In summary, the current technical context has been reset to a level where a new upward trend could occur."

Thielen also noted that some altcoins are starting to break out of bearish channels and are trading at more "attractive" levels.

Bitcoin is currently trading at $86,739, up 3.1% in the last 24 hours. Meanwhile, ETH, Tron, and AVAX have recovered by 5.8%, 7%, and 14.4% respectively over the past week. However, this research analyst predicts that it will face "strong resistance" at the $90,000 level if Bitcoin reaches that level.

Although the outlook is somewhat more positive, there is "no clear catalyst for an immediate parabolic price increase," Thielen said.

Initially, he predicted that the price of Bitcoin would not fall below $73,000, thereby avoiding a "deep bear market," as the largest group of Bitcoin holders ( wallets with 100-1,000 Bitcoin ) could be family offices and asset managers, who invest in Bitcoin with a long-term goal.

You also note that Bitcoin spot ETF funds in the US attracted inflows for the first time last week, since the last week of January.

"We predict that the selling activity of Bitcoin ETFs from investors focused on arbitrage will gradually decrease, as the arbitrage opportunities have primarily been closed off in the past few weeks," Thielen added.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

• Metaplanet buys an additional 150 BTC with a target of 10,000 BTC for the year
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• In the near future, Vietnamese traders may have to pay taxes on cryptocurrency transactions.

Dinh Dinh

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