Bitcoin bottom forming as Fed eases, Trump softens on tariffs: Analyst
Bitcoin’s Market Trends and Interplay with Economic Indicators
Recent fluctuations in the cryptocurrency market have captured the attention of analysts, particularly as Bitcoin approaches a pivotal moment. Commenting on current developments, Markus Thielen, founder of 10x Research, suggests that Bitcoin may be poised for a significant rebound toward the psychologically important $90,000 mark. This optimism is partially influenced by US economic policies, specifically the softening stance of President Donald Trump regarding tariffs and the Federal Reserve’s recent dovish signals.
In a report dated March 23, Thielen posited that Bitcoin could be in the early stages of forming a market bottom. Trump’s shift towards a more flexible approach on upcoming tariffs, particularly those set for April 2, aligns with a broader trend of decreased market tensions that could foster a conducive environment for recovery. The Federal Reserve’s actions during its March 18-19 meeting also play a crucial role; the central bank indicated it would overlook short-term inflation concerns, paving the way for potential easing of monetary policy in the future, which could bolster asset prices overall.
Thielen highlighted that Bitcoin’s 21-day moving average currently stands at $85,200, an encouraging sign for traders. Historical data suggests that similar reversal indicators have recently aligned favorably, harking back to prior bullish trends seen in September 2023, fueled by the rising discourse around Bitcoin exchange-traded funds (ETFs), and anticipated momentum as the upcoming US elections near in August 2024.
Moreover, Thielen noted that several altcoins are quietly gaining traction, with notable breakouts from downtrend channels, presenting investors with more attractive entry points. Indeed, Bitcoin is currently priced at $85,720, reflecting a 2.1% uptick in the past 24 hours, according to CoinGecko data.
Despite the encouraging signs, Thielen warns of “significant resistance” at the $90,000 threshold. The analysis hints that, while the current trends are positive, an immediate and explosive market rally lacks a clear catalyst.
In his prior assessments, Thielen asserted that Bitcoin’s price wouldn’t drop below $73,000, which would avert a severe bear market scenario. He implies that long-term holders—largely family offices and wealth managers—are less likely to panic sell at current price points. Compounding this sentiment is the recent uptick in inflows for US-based spot Bitcoin ETFs, which marked a return to investment after a dry spell since January.
As the cryptocurrency market navigates through these multifaceted influences, the confluence of economic policies and market sentiment will likely play a decisive role in determining the trajectory of Bitcoin and other cryptocurrencies in the upcoming weeks.
