Bitcoin shows signs of recovery with positive market signals and Federal Reserve support, but faces resistance - IcoHolder.

Bitcoin may be forming a market bottom as recent technical indicators and changing macroeconomic conditions signal potential recovery. In an analysis released on March 24, crypto analytics firm 10X Research observed a notable shift in the cryptocurrency's performance, as the market steadies after concerns over a more severe correction. Initially, analysts had anticipated a harsher decline after Bitcoin dropped below $95,000, which suggested a breakdown from its ascending broadening wedge pattern. However, improved technical signals and a more favorable macro environment have led to a more positive outlook for Bitcoin.

The Federal Reserve's recent policy stance has played a significant role in this change of sentiment. Following the latest Federal Open Market Committee (FOMC) meeting, the Fed's indication that it is prepared to look past short-term inflation concerns and may implement rate cuts later this year has boosted confidence in risk assets like Bitcoin. Analysts believe this more accommodative policy stance will support the cryptocurrency’s recovery.

Further optimism stems from former U.S. President Donald Trump's comments about tariff policies. His less confrontational stance on tariff announcements, particularly those set for April 2, could reduce short-term uncertainty and contribute to Bitcoin's ability to maintain recent stability.

Despite these positive developments, Bitcoin continues to face strong resistance between $90,000 and $92,000. 10X Research noted that the market is likely to continue consolidating unless Bitcoin breaks out of this range. Institutional investors are also exercising caution as they await important corporate earnings reports in April, which could influence the overall market sentiment.

At the time of writing, Bitcoin is trading at approximately $86,917, showing slight upward momentum from recent lows. The Moving Average Convergence Divergence (MACD) indicator suggests a potential bullish shift, while the Relative Strength Index (RSI) remains neutral at 51, indicating a balanced market. Short-term moving averages point to a bullish trend, although the 100-day and 50-day averages continue to signal possible resistance, implying that Bitcoin might face further challenges.

As Bitcoin approaches the $90,000 resistance level, the next key price point to watch is between $87,000 and $88,000. If Bitcoin is unable to break through this range, support levels between $84,500 and $85,000 may hold. Investor sentiment appears to be improving, with the first inflows into Bitcoin exchange-traded funds since January signaling growing confidence. Although risks remain, the combination of a favorable macro environment and reduced selling pressure could pave the way for Bitcoin’s next upward move.