Bitcoin may set the stage for a reversal to $90,000 in light of the hints of tariff relief by former U.S. President Donald Trump and the Federal Reserve’s strong position against inflation concerns for the short term. According to a crypto expert the factors mentioned above could be the reason for Bitcoin reaching a low and getting ready for a recovery.
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Bitcoin’s Bottoming Pattern and the $90,000 Target
Bitcoin has been trying to find an upper level, aided by President Trump’s latest declaration that he is “flexible” regarding the upcoming March 2 tariffs on reciprocity and a noticeable softening of the previous position in the opinion of Markus Thielen, founder of 10x Research.
Furthermore, it was noted that the Federal Reserve, in its March 18-19 meeting, stated that it was going to “look past short-term inflationary pressures,” which may open the way to ease in the future, Thielen noted. Federal Reserve Chair Jerome Powell’s moderately cautious tone affirmed the belief that the Fed’s stance of protection is in place and provides more support for the possibility of a rise in the value of stocks and other risky assets such as Bitcoin.
Technical Indicators Support a Potential Reversal
10x Research’s Bitcoin Reversal indicators have changed positively, with Bitcoin’s 21-day moving average at around $85,200. Thielen pointed out that the indicators are now at the levels that, during previous bull markets, indicated an increase in momentum. Similar patterns were seen in September 2023 when Bitcoin’s rise was driven by the expectation of ETFs, or exchange-traded funds (ETFs) in August 2023, and then again in August 2024 as a U.S. election approached.
“The technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold,” Thielen said. Thielen further noted that some altcoins have started to break out of their downward trend channels and trading at significantly higher prices.
Current Market Performance and Resistance Levels
At present, Bitcoin is trading at $85,720. That’s an increase of 2.1 percent increase in the past 24 hours, as per CoinGecko reports. Some other major cryptos have witnessed significant gains
- Ether (ETH) is up 4.3 percent. Currently, it is $2,047.
- Tron (TRX) The Tron stock is up 6.4 percent in trading and is currently trading at $0.2276
- Avalanche (AVAX) Avalanche (AVAX): Up 8.9 percent, in the range of $21.54
Even with this upbeat momentum, Thielen is expecting “significant resistance” at the $90,000 mark if Bitcoin gets to that. Although the forecast appears to be more positive, he warned the market that “no clear catalyst exists for an immediate parabolic rally.”
Institutional Inflows and ETF Trends
Thielen has previously stated that Bitcoin would not fall to $73,000 and prevent the possibility of a “deep bear market.” This is due to the institution-based investors with long-term plans, like families and wealth managers, who have invested in Bitcoin to last for a long time.
Also, in line with this view, U.S.-based spot Bitcoin ETFs experienced inflows during the week, for only the second time in the loss of January. Thielen said that investors who are focused on arbitrage were selling Bitcoin ETFs are absconding from their business because arbitrage opportunities have virtually been eliminated in the past few days.
Final Thoughts
The technical indicators for Bitcoin and macroeconomic trends suggest an eventual growth, the resistance is still strong at $90,000. A combination of President Trump’s soft approach to tariffs, Federal Reserve’s policy towards inflation as well as the renewed ETF flows are creating a supportive environment. But, with no major driver, a dramatic increase in Bitcoin is not certain. Investors must be aware of important levels and market indicators attentively in the meantime Bitcoin determines the next step.
