Bitcoin Price Bounce Likely with Fed Easing and Trump’s New Approach
Bitcoin Price– Bitcoin may be nearing its bottom, with potential for a rebound toward $90,000, according to a recent analysis. Key factors driving this shift include changes in US tariff policies and the Federal Reserve’s stance on inflation.
Markus Thielen, founder of 10x Research, noted that Bitcoin is attempting to find support as US President Donald Trump signals flexibility regarding tariffs. In particular, his softened rhetoric about the upcoming April 2 reciprocal tariffs suggests a shift towards a more accommodating stance, which could benefit market sentiment.
Federal Reserve’s Dovish Tone
The Federal Reserve’s recent meeting also played a pivotal role in this outlook. Thielen pointed out that the Fed has indicated it would look past short-term inflation pressures, potentially paving the way for future easing. The slightly dovish tone from Federal Reserve Chairman Jerome Powell reinforces the expectation of continued support for asset recovery, including Bitcoin.
Bitcoin’s price has been hovering around $85,720, with a 2.1% increase in the past 24 hours. Thielen highlighted that Bitcoin’s 21-day moving average is now at $85,200, a level that has previously marked the start of bull runs, such as in September 2023 and August 2024. These technical indicators suggest that a new uptrend could be forming.
Altcoins Gaining Momentum
Other cryptocurrencies, like Ether, Tron, and Avalanche, have also seen positive movement. Over the past week, these altcoins have rebounded by 4.3%, 6.4%, and 8.9%, respectively, showing signs of growth as well.
However, while the outlook is more optimistic, Thielen cautioned that significant resistance might appear at the $90,000 mark for Bitcoin. There are no immediate catalysts for a dramatic rally, and Bitcoin’s price may face challenges in pushing beyond that level.
In summary, Bitcoin’s technical and market fundamentals seem to be aligning for a potential recovery, but investors should be aware of the resistance ahead.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment