According to a recent report by 10X Research, Bitcoin (BTC) may be attempting to form a local bottom, as US President Donald Trump is expected to soften his stance on reciprocal tariffs, which are set to go into effect on April 2. Up Only For Bitcoin? Bitcoin’s plunge to $77,000 on March 10 may have marked the bottom for the top cryptocurrency in the current market cycle. Since then, the digital asset has appreciated by more than 10%, trading in the mid $80,000 range at the time of writing. Related Reading: Bitcoin Needs Weekly Close Above This Level To Confirm Market Bottom, Analyst Says The 10X Research report suggests that Trump’s recent pivot toward “flexibility” on the upcoming April 2 reciprocal trade tariffs may have alleviated some concerns about further deterioration in the global macroeconomic outlook. Additionally, the report emphasizes the US Federal Reserve’s (Fed) comments following this month’s Federal Open Market Committee (FOMC) meeting, where the central bank indicated that it would slow the pace of balance sheet drawdown and end the current cycle of quantitative tightening. The Fed’s remarks followed the release of the February 2025 Consumer Price Index (CPI) inflation data, which came in line with expectations, easing concerns about inflation. The report’s claim that BTC has formed a bottom aligns with crypto entrepreneur Arthur Hayes’ recent statement, where he noted that BTC may have “probably” bottomed at $77,000. The following chart illustrates a bullish reversal in BTC’s 21-day moving average, which currently sits at $85,200. The report points out that these weekly reversal signs are back at levels typically seen when past bull markets have resumed. For example, in September 2023, BTC benefited from bullish momentum as the Bitcoin exchange-traded funds (ETF) narrative gained traction. Similarly, BTC embarked on a historic rally in August 2024 as the US presidential election drew closer. Additionally, a recent post on X by seasoned crypto analyst Ali Martinez highlights that Bitcoin transaction fees have nearly tripled over the past week, indicating an uptick in network activity as market sentiment improves. BTC Still Not Completely Bullish While Trump’s softening stance on tariffs is good news for risk-on assets like cryptocurrencies, BTC still needs to break through and sustain certain price levels to regain strong bullish momentum. Related Reading: Bitcoin Uptrend Soon? Dollar Index Breakdown Sparks Optimism Among BTC Bulls Recent analysis by Martinez identified $94,000 as a critical price level for BTC to overcome. If the digital asset decisively breaks through and sustains this level, it could be poised to climb as high as $112,000. That said, concerns remain about BTC’s relatively weak price performance compared to other safe-haven assets like gold. At press time, BTC is trading at $87,650, up 3.6% in the past 24 hours. Featured image from Unsplash, charts from 10X Research, X, and TradingView.com
