Bitcoin’s Dramatic Comeback: Will Trump and the Fed Save the Day? 🤔💰

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It appears that our dear friend Bitcoin has decided to stop sulking in the corner and is now contemplating a rather audacious rebound towards the dizzying heights of $90,000. This change of heart comes after none other than President Donald Trump hinted at a willingness to ease tariffs, while the Federal Reserve, in a display of remarkable restraint, resisted the urge to panic last week, according to a rather astute crypto analyst.

“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,” proclaimed Markus Thielen, the founder of 10x Research, in a report that could have been mistaken for a Shakespearean soliloquy.

In a meeting held on March 18-19, the Federal Reserve signaled that it would also “look past short-term inflationary pressures, laying the groundwork for potential future easing,” Thielen added, presumably while adjusting his monocle.

“Powell’s mildly dovish tone suggests that the Fed’s put remains intact, providing further support for a recovery in stock prices,” he quipped, likely with a twinkle in his eye.

As if by magic, 10x Research’s Bitcoin reversal indicators have turned bullish, with Bitcoin’s (BTC) 21-day moving average now sitting pretty at $85,200, as Thielen noted, probably while sipping a cup of Earl Grey.

Thielen went on to observe that 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 loomed large, like a rather ominous cloud on the horizon.

“In short, the technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold,” he declared, sounding like a modern-day oracle.

Moreover, Thielen noted that several altcoins are already breaking free from their downtrend channels and are now trading at more “attractive levels,” which is a bit like finding a five-pound note in an old coat pocket.

Currently, Bitcoin is trading at $85,720, having gained a modest 2.1% over the last 24 hours, as per the ever-reliable CoinGecko data.

Meanwhile, Ether (ETH), Tron (TRX), and Avalanche (AVAX) have rebounded by 4.3%, 6.4%, and 8.9% respectively over the last week, which is rather like watching a flock of ducks waddle happily across a pond.

However, our crypto sage Thielen does caution that “significant resistance” is expected at the $90,000 mark for Bitcoin, should it dare to reach that lofty height.

Despite this more optimistic outlook, he added that “no clear catalyst exists for an immediate parabolic rally,” which sounds rather like a wet blanket thrown over a lively party.

He initially opined that Bitcoin wouldn’t drop below $73,000 — thereby avoiding a “deep bear market” — because the largest sum bracket of Bitcoin holders (those wallets with 100-1000 Bitcoin) are likely family offices and wealth managers, who are in it for the long haul, like a determined tortoise in a race.

In addition, he noted that the US-based spot Bitcoin ETFs returned inflows for the first time last week since the last week of January, which is as surprising as finding out that tea is, in fact, quite popular in England.

“We expect Bitcoin ETF selling from arbitrage-focused investors to wind down, as the arbitrage opportunities have primarily been closed for weeks,” Thielen added, likely while adjusting his bowler hat.

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2025-03-24 06:17