Bitcoin (BTC) is at a crucial point: a weekly closure above $ 89,000 is necessary to definitively leave the recent soil behind. This states crypto analyst Matthew Hyland, who warns that a failed breakthrough can send the race to $ 69,000.
$ 89,000 as a turning point for the market
On March 7, Bitcoin tapped $ 89,000 for the last time, a level that previously served as support before the race broke and dropped to a low point of $ 78,523. Since then, the price has fluctuated around $ 80,000.
According to data from Coinglass, a return above $ 89,000 would liquidate around $ 1.6 billion in short positions, which can generate extra buying pressure. “If we see a weekly closure above this level, the soil is probably in and we can expect further increases,” said Hyland.
If Bitcoin is unable to break this resistance, a further decrease is lurking. Hyland provides a possible test of the area between $ 74,000 and $ 69,000, a price range that has not been reached since November.
“Bitcoin could re -test this lower range in the coming weeks or months,” he predicts. Yet he remains optimistic that an outbreak above the resistance sets a new upward trend.
Weakening American demand for bitcoin
In addition to technical factors, macro-economic developments also play a role. Data from Cryptoquant shows that the demand for Bitcoin in the US decreased by 103,000 Bitcoin last week, the strongest decrease since July 2024.
This relapse is largely attributed to economic uncertainty, including inflation expectations and the import tariffs imposed by President Donald Trump on 1 February. In addition, the American central bank remains cautious: FED chairman Jerome Powell indicated that he was in a hurry on 7 March with interest rate letings.
Bitcoin has had a challenging period, with a decrease of 15.2% in the past month. Nevertheless, the market remains focused on the $ 89,000 limit as decisive for the next movement. A successful breakthrough would destroy short positions and possibly initiate a new rally, while a rejection opens the door to a deeper correction.
At the time of writing, the Bitcoin rate is $ 83,400, an increase of 2.34% in the last 24 hours.
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Source: https://newsbit.nl/bitcoin-moet-week-boven-89k-sluiten-om-bodem-te-bevestigen/
