A cryptocurrency analyst indicates that Bitcoin needs to conclude the week above $89,000 to signify a cessation of the short-term downtrend.
“The sole method for Bitcoin to validate that the bottom is genuinely in place would be to close a weekly candle back above $89K,” crypto analyst Matthew Hyland stated in a video shared on X on March 13.
Without a close above $89,000, Bitcoin could decline to $69,000
Bitcoin (BTC) last reached $89,000 on March 7, a point Hyland regards as critical, as it was the support zone where Bitcoin eventually “dropped below.” After falling under $89,000, it slipped to $78,523 on March 11 before finding stability in the lower $80,000s.
Currently priced at $83,406, a rise above $89,000 would trigger the liquidation of roughly $1.60 billion in short positions, as noted by data from CoinGlass.
Bitcoin has declined by 15.42% in the last month. Source: CoinMarketCap
If Bitcoin does not manage to close above this mark, Hyland cautioned that the asset’s price could plummet to a range between $74,000 and $69,000, levels that Bitcoin hasn’t encountered since November.
“At this stage, it seems likely that in the upcoming weeks or months, Bitcoin will probably test this lower support zone at some point,” he remarked.
“Should we achieve a weekly close above this level, I believe the bottom is established for Bitcoin, and we won’t decline to this range,” he added. Hyland indicated that typically it results in further gains when Bitcoin surpasses a resistance level.
Demand for Bitcoin in the US has decreased
Nevertheless, interest in Bitcoin within the US has been waning recently due to broader economic factors.
Bitcoin’s demand plummeted by 103,000 BTC last week in comparison to the prior week, “signifying its sharpest contraction since July 2024,” according to CryptoQuant.
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CryptoQuant mentioned that the recent decrease in Bitcoin’s demand in the US was attributed to uncertainty regarding US inflation rates and the tariffs imposed by US President Donald Trump on Feb. 1.
On March 7, Federal Reserve chair Jerome Powell reiterated that he had no urgency to modify interest rates.
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This article does not offer investment advice or recommendations. Every investment and trading action involves risks, and readers should perform their own analysis prior to making any decision.
