Bitcoin’s Soaring Comeback? Analyst Predicts $90K Surge as Fed Eases, Trump Softens Stance
Buckle up, crypto enthusiasts! Could Bitcoin be on the verge of a spectacular comeback? A leading crypto analyst is suggesting exactly that, pointing to a potential surge all the way back to the coveted $90,000 mark. This bullish outlook is fueled by recent signals from the US Federal Reserve and a surprising shift in tone from former President Donald Trump regarding tariffs. Let’s dive into the details and explore what’s driving this potentially massive Bitcoin price rebound.
Is a Bitcoin Bottom Finally Forming?
According to Markus Thielen, founder of 10x Research, there are strong indications that Bitcoin may have finally hit its bottom. This optimistic view stems from two key developments: Trump’s softened stance on tariffs and the Federal Reserve’s recent meeting where they appeared to downplay immediate inflation concerns.
- Trump’s Tariff ‘Flexibility’: Thielen highlights Trump’s recent comments suggesting he might be more ‘flexible’ regarding upcoming reciprocal tariffs in April. This is a significant departure from his previously hardline rhetoric and could signal a less confrontational economic approach, which markets often welcome.
- Federal Reserve’s Dovish Signals: The Fed’s meeting minutes from March 18-19 indicated a willingness to ‘look past short-term inflationary pressures.’ This ‘mildly dovish tone’ from Fed Chair Powell, as Thielen puts it, suggests the central bank is unlikely to aggressively tighten monetary policy in the near term. This is crucial because tighter monetary policy can often dampen risk asset appetite, including cryptocurrencies.
These factors combined have led 10x Research’s Bitcoin reversal indicators to turn bullish. Thielen notes that Bitcoin’s 21-day moving average is now at $85,200, a level that historically has preceded renewed bull market phases.
Historical Patterns Point to Potential Bitcoin Surge
Thielen’s analysis isn’t just based on current events; it’s also grounded in historical Bitcoin market behavior. He points to similar bottoming formations in the past two years that preceded significant bull runs:
- September 2023: The rise of the Bitcoin exchange-traded fund (ETF) narrative sparked a major rally after a similar bottoming pattern.
- August 2024 (Projected – based on original article date context): Anticipation surrounding the US election, another potential market-moving event, coincided with a bottoming formation.
According to Thielen, the current technical setup mirrors these past scenarios, suggesting that a ‘renewed uptrend could plausibly unfold.’
Altcoins Showing Strength: Is the Crypto Market Broadening?
It’s not just Bitcoin showing signs of life. Thielen also points out that several altcoins are already breaking free from their downtrend channels and are trading at ‘attractive levels.’ This suggests that the potential market recovery could be broader than just Bitcoin, potentially encompassing a wider range of cryptocurrencies.
Recent performance data backs this up:
| Cryptocurrency | 7-Day Price Change |
|---|---|
| Bitcoin (BTC) | +2.1% |
| Ether (ETH) | +4.3% |
| Tron (TRX) | +6.4% |
| Avalanche (AVAX) | +8.9% |
While Bitcoin is currently trading around $85,720, up 2.1% in the last 24 hours, these altcoins are demonstrating even stronger rebounds, indicating a potential shift in market sentiment.
$90,000 Bitcoin Target: Resistance Ahead?
While the outlook is increasingly positive, Thielen anticipates ‘significant resistance’ for Bitcoin around the $90,000 level should it reach that point. This isn’t unexpected; psychological resistance levels often present hurdles in any market. He also cautions that ‘no clear catalyst exists for an immediate parabolic rally.’ In other words, while the conditions for a sustained uptrend are forming, a sudden, explosive price surge might not be imminent.
Why Bitcoin May Avoid a Deep Bear Market
Thielen had previously stated his belief that Bitcoin wouldn’t fall below $73,000, thus avoiding a ‘deep bear market.’ His reasoning is based on the holdings of large Bitcoin wallets (100-1000 BTC), which he believes are largely controlled by family offices and wealth managers with a long-term investment horizon. These holders are less likely to panic sell during short-term price dips, providing a degree of price support.
Adding to the bullish case, US-based spot Bitcoin ETFs have seen inflows returning after a period of outflows since January. Thielen believes that selling pressure from arbitrage-focused investors in these ETFs is likely waning, further reducing potential downward pressure on the Bitcoin price.
Looking Ahead: Cautious Optimism for Bitcoin
In conclusion, the analysis suggests a cautiously optimistic outlook for Bitcoin. The combination of a potentially more accommodative stance from the Fed easing monetary policy, a less hawkish approach from Trump on tariffs, and positive technical indicators are creating a favorable environment for a potential Bitcoin recovery. While the road to $90,000 may encounter resistance, the groundwork for a renewed uptrend appears to be taking shape. Keep a close eye on market developments, but for now, the signals are pointing towards a brighter horizon for Bitcoin and the broader crypto market.
