According to a cryptocurrency analyst, Bitcoin needs to finish the week above $89,000 to indicate a halt to the current short-term downtrend.
In a video shared on X on March 13, crypto analyst Matthew Hyland stated, “The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K.”
Failure to Close Above $89,000 Could Send Bitcoin to $69,000
Bitcoin (BTC) last reached $89,000 on March 7, which Hyland views as a pivotal level since it was the support zone from which Bitcoin eventually “broke down below.” Following this dip, Bitcoin fell to $78,523 on March 11 before finding some stability in the low $80,000s.
Currently trading at $83,406, if Bitcoin surpasses $89,000, it could trigger the liquidation of approximately $1.60 billion in short positions, according to data from CoinGlass.
Bitcoin has seen a decrease of 15.42% over the last month. Source: CoinMarketCap
If Bitcoin does not manage to close above this level, Hyland cautioned that the price could decline to a range between $74,000 and $69,000, a point not seen since November.
“It’s likely that in the upcoming weeks or months, Bitcoin will test this lower range of support,” he remarked.
“A weekly close above this area would suggest that the low is in for Bitcoin, and we won’t be revisiting that area,” he added, noting that breaking through a resistance level usually leads to further gains.
Declining Demand for Bitcoin in the US
However, Bitcoin demand in the US has been waning lately, influenced by broader economic conditions.
According to CryptoQuant, Bitcoin’s demand saw a reduction of 103,000 BTC last week compared to the prior week, marking its most rapid contraction since July 2024.
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CryptoQuant attributed the recent drop in US Bitcoin demand to uncertainties concerning US inflation rates and tariffs imposed by President Donald Trump on February 1.
On March 7, Federal Reserve Chair Jerome Powell reiterated his cautious approach regarding adjustments to interest rates.
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research prior to making a decision.
