Bitcoin analysts are closely monitoring the weekly close to assess Bitcoin’s price direction for the upcoming week, as both traditional and crypto markets seem to be lacking clarity amidst a blend of global trade war anxieties and diminishing inflation worries.
According to Ryan Lee, chief analyst at Bitget Research, Bitcoin’s (BTC) price may face further declines next week unless it can secure a weekly close above the $85,000 psychological threshold.
“Bitcoin’s relief rally following the FOMC meeting and lower CPI figures has led analysts to focus on a crucial weekly close above $85,000 to maintain upside potential,” Lee explained to Cointelegraph, adding:
“Closing above this mark could stave off a plunge to $76,000 and indicate market strength, while $87,000 would offer even clearer bullish validation. Macro factors such as stable interest rates and easing inflation support risk assets, but the close on Sunday will be pivotal.”
BTC/USD, 1-year chart. Source: Cointelegraph
Bitcoin’s price has shown limited momentum, increasing by just 0.9% over the past week, as per Cointelegraph Markets Pro data. A lackluster weekly close raises the possibility of revisiting last week’s low of $76,600.
Related: Whale closes $516M 40x Bitcoin short, pockets $9.4M profit in 8 days
Analyst urges markets to focus on long-term holder accumulation
While Bitcoin might contend with short-term declines, the relief rally following the Federal Open Markets Committee (FOMC) meeting signals positive momentum for market participants, asserts Enmanuel Cardozo, market analyst at Brickken, a platform for real-world asset (RWA) tokenization.
Cardozo recommends that instead of fixating on short-term price fluctuations, investors should monitor long-term Bitcoin holder accumulation as a means to discern BTC’s trend, adding:
“Long-term holders are consistently accumulating, as evidenced by on-chain data; the steady buildup by these holders since the dip is what warrants our attention.”
Since the beginning of February, long-term holders have resumed their accumulation of Bitcoin, amassing over $21 billion in value.
BTC: Total supply held by long-term holders, year-to-date chart. Source: Glassnode
The total Bitcoin supply held by long-term holders has surged by over 250,000 BTC in less than two months, climbing from 13.1 million BTC on February 11 to over 13.3 million by March 22, according to Glassnode data.
Related: Trader nets $480K with 1,500x return before BNB memecoin crashes 50%
BTC/USD, 1-day chart. Source: Cointelegraph/TradingView
Despite numerous positive regulatory and crypto-related advancements, fears of global tariffs are expected to exert pressure on the markets until at least April 2, notes Nicolai Sondergaard, a research analyst at Nansen.
Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8
