Bitcoin bottom watchers are back in action as new macro shifts point toward a possible turning point for the leading cryptocurrency. With Bitcoin recently stabilizing around the $65K–$70K range after a heated bull run earlier this year, traders and analysts are now digging into the details: has the bottom already formed?
Recent signals from political and economic arenas are adding weight to this theory. Former President Donald Trump’s change in tone on tariffs and the Federal Reserve’s dovish posture has created a ripple effect across global markets—especially in crypto. Let’s break down the developments influencing Bitcoin’s recent behavior and what might be coming next.
Trump’s Softer Tone on Trade Could Calm Markets
Donald Trump’s recent comments about revisiting reciprocal tariffs previously set for April 2 caught the market by surprise. While known for his hardline approach to trade, this move toward flexibility has reduced fears of economic instability—particularly among investors watching for macro stressors.
Historically, risk assets like Bitcoin react positively to policy shifts that signal less economic turbulence. A lighter trade environment could indirectly encourage more capital to move into crypto, helping confirm the Bitcoin bottom narrative.
Federal Reserve Takes Its Foot Off the Gas
The Federal Reserve’s latest meeting carried a surprisingly gentle message: it’s not rushing to tighten monetary policy. Chair Jerome Powell signaled patience with inflation and didn’t suggest any aggressive rate hikes in the near term.
This sentiment is crucial for crypto markets. Bitcoin has historically performed well in low-rate or rate-neutral environments when liquidity remains ample. Analysts have interpreted the Fed’s tone as supportive of continued investment in high-risk assets, further feeding the idea that a Bitcoin bottom might already be in place.
Bitcoin Bottom Finds Support in Technical Indicators
From a technical lens, Bitcoin’s chart is showing promising signs. The 21-day moving average—currently around $85,200—has acted as a critical pivot. Analysts at 10x Research point out that current weekly reversal indicators mirror past bull resumption phases, such as in late 2023 and mid-2024.
If history repeats itself, this may confirm that the Bitcoin bottom has already formed. These chart patterns have consistently preceded strong recovery phases in prior cycles.
ETF Inflows and Altcoin Moves Add to the Narrative
Institutional sentiment is shifting as well. U.S.-based spot Bitcoin ETFs recently reported net inflows after a multi-week drought, signaling renewed institutional interest. This coincides with altcoins beginning to break out of downtrend patterns, suggesting a broader shift in market sentiment.
ETF activity often serves as a thermometer for traditional investor confidence in Bitcoin. When those inflows pick up, it’s usually a precursor to sustained momentum—another potential confirmation of a Bitcoin bottom scenario playing out.
But Resistance at $90K Could Stall Momentum
Despite the bullish signals, the road higher isn’t guaranteed. Markus Thielen of 10x Research warns that Bitcoin faces strong resistance near the $90,000 mark. That level could act as a psychological and technical barrier, slowing further upside without a strong enough catalyst.
At the same time, while the selling pressure from arbitrage-based traders appears to be easing, no explosive driver—like a new ETF approval or a major tech integration—is currently on the horizon. That leaves the market in a cautious but optimistic state.
Final Thoughts
All signs point toward the Bitcoin bottom being either very close or already behind us. With the macro environment softening, technical indicators aligning, and institutional inflows resuming, Bitcoin could be setting up for its next leg higher.
Still, traders should tread carefully. Without a clear breakout trigger, resistance levels could challenge upward momentum. But if the current alignment holds, 2025 might still shape up to be a breakout year for crypto’s king.
Stay connected with TurkishNY Radio by following us on Twitter and LinkedIn, and join our Telegram channel for more news.
FAQs
1. What does a Bitcoin bottom mean?
A Bitcoin bottom refers to the lowest price point in a market cycle before the cryptocurrency starts to rise again.
2. Why are Trump’s trade policies affecting Bitcoin?
Market uncertainty from strict trade policies can impact investor confidence. A softer tone from Trump signals reduced economic tension, which often benefits risk assets like Bitcoin.
3. How does the Federal Reserve influence Bitcoin?
When the Fed takes a dovish stance—meaning it’s less aggressive about raising interest rates—liquidity improves, which can drive investment in Bitcoin and other cryptocurrencies.
4. What are ETF inflows and why do they matter?
ETF inflows refer to money moving into exchange-traded funds. Increased Bitcoin ETF inflows suggest rising institutional interest, a bullish signal for Bitcoin’s price.
Glossary of Key Terms
- Bitcoin Bottom: The lowest price level in a cycle before Bitcoin begins to recover.
- Federal Reserve (Fed): The central banking system of the U.S., which sets interest rates and monetary policy.
- Dovish: A term used when central banks are more accommodating, typically keeping interest rates low to encourage economic growth.
- Tariffs: Taxes on imports or exports between countries. Higher tariffs can cause economic stress.
- ETF (Exchange-Traded Fund): A type of investment fund traded on stock exchanges; Bitcoin ETFs allow institutional investors to gain exposure to Bitcoin.
- Technical Indicators: Tools like moving averages and momentum signals used by traders to predict price movements.
- Resistance Level: A price point where selling pressure typically prevents further upward movement in an asset.
Sources