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

Bitcoin (BTC) may have bottomed and could rebound toward $90000 after US President Donald Trump signaled a willingness to ease tariffs

Crypto analyst Markus Thielen at 10x Research says Bitcoin may have finally 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.

“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,” 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,” he added.

As a result, 10x Research’s Bitcoin reversal indicators have turned bullish, with Bitcoin’s (BTC) 21-day moving average now at $85,200, Thielen noted.

Bitcoin’s bottoming formations over the last two years. Source: 10x Research

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.

“Several altcoins are also breaking out of their downtrend channels and trading at more attractive levels,” the analyst noted.

Bitcoin is currently trading at $85,720, up 2.1% over the last 24 hours, according to CoinGecko data.

Meanwhile, Ether (ETH), Tron (TRX), and Avalanche (AVAX) have rebounded 4.3%, 6.4 and 8.9% respectively over the last week.

However, Thielen 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, he added.

Related: Bitcoin ‘in position’ for first key RSI breakout in 6 months at $85K

Initially, Thielen said he expected Bitcoin to avoid dropping 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.