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Bitcoin must close the week above $89,000 to signal an end to the short-term downtrend, says a crypto analyst.
“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K,” crypto analyst Matthew Hyland said in a video posted to X on March 13.
Without $89,000 close, Bitcoin may head toward $69,000
Bitcoin (BTC) last traded at $89,000 on March 7, a level Hyland considers crucial since it was the support area where Bitcoin ultimately ended up “breaking down below.” After falling below $89,000, it dropped to $78,523 on March 11 before stabilizing in the low $80,000s.
With Bitcoin currently trading at $83,406, a move above $89,000 would liquidate approximately $1.60 billion in short positions, as per CoinGlass data.
If Bitcoin fails to close above it, Hyland warned the asset’s price could drop to between $74,000 to $69,000, a level Bitcoin hasn’t seen since November.
“It probably is likely at this point that going into the coming weeks or the coming months, Bitcoin will likely test this lower range at some point of support,” he said.
“If we do get a weekly close above this area, I think the low is in for Bitcoin, and we are not going down to this area,” he said. Hyland said that it typically leads to further upside when Bitcoin breaks above a resistance level.
Bitcoin demand in the US has declined
However, demand for Bitcoin in the US has been declining recently due to macroeconomic factors.
Bitcoin’s demand fell by 103,000 BTC last week compared to the previous week, “marking its fastest pace of contraction since July 2024,” according to CryptoQuant.
Related: Bitcoin high-entry buyers are driving sell pressure, price may ‘floor’ at $70K
CryptoQuant said the recent decline in Bitcoin’s demand in the US was due to uncertainty around US inflation rates and US President Donald Trump’s imposed tariffs on Feb. 1.
On March 7, Federal Reserve chair Jerome Powell reiterated that he was in no hurry to adjust interest rates.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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