Bitcoin (BTC) appears to be forming a local bottom around $77,000 as market sentiment improves following reports that former President Donald Trump may soften his stance on upcoming reciprocal tariffs. This development, combined with positive macroeconomic signals, suggests a potential trend reversal for the leading cryptocurrency.
According to a comprehensive analysis by 10X Research, Bitcoin’s recent price action and several key indicators point to a bottoming formation. The critical support level at $83,000 continues to hold, providing a foundation for potential upward momentum.
Multiple Factors Signal Bitcoin Bottom Formation
Several key factors support the bottom formation thesis:
- Trump’s flexibility on April 2 reciprocal tariffs easing global market concerns
- Federal Reserve’s indication to slow balance sheet reduction
- February 2025 CPI data meeting expectations
- Bullish reversal in BTC’s 21-day moving average at $85,200
- Network activity surge with transaction fees tripling
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Technical Analysis Points to Higher Targets
Crypto analyst Ali Martinez identifies $94,000 as the crucial resistance level Bitcoin needs to overcome. A successful breach could propel BTC toward $112,000. Current market sentiment and technical indicators suggest a major breakout could be imminent.
Key Price Levels to Watch
| Level | Significance |
|---|---|
| $77,000 | Current bottom formation |
| $85,200 | 21-day moving average |
| $94,000 | Critical resistance |
| $112,000 | Potential target |
FAQ Section
What caused Bitcoin’s recent bottom formation?
A combination of Trump’s softening stance on tariffs, positive Fed signals, and increased network activity contributed to the bottom formation.
What are the key resistance levels for Bitcoin?
The primary resistance level is at $94,000, with a potential target of $112,000 if this level is breached.
How does Trump’s tariff policy affect Bitcoin?
Trump’s trade policies impact global market sentiment and risk assets like Bitcoin, with a more flexible stance generally being positive for crypto markets.
At press time, Bitcoin trades at $87,650, showing a 3.6% increase over the past 24 hours. While the immediate outlook appears positive, traders should remain cautious and monitor key resistance levels for confirmation of the bottom formation.