A crypto analyst has stated that Bitcoin needs to finalize the week above $89,000 to indicate a conclusion to the short-term downward trend.
“The only way to validate that the bottom is truly in would be for Bitcoin to close a weekly candle back above $89K,” the analyst remarked in a video shared on social media.
Failure to reach $89,000 could push Bitcoin toward $69,000
Bitcoin last reached $89,000 on March 7, a pivotal level that the analyst views as critical due to the support zone where Bitcoin eventually “broke down below.” Following this drop, the price fell to $78,523 on March 11 before finding some stability in the low $80,000s.
Currently priced at $83,406, a breakthrough above $89,000 could trigger the liquidation of approximately $1.60 billion in short positions, according to data collected from various sources.
Bitcoin has seen a decrease of 15.42% over the past month. Source: CoinMarketCap
If Bitcoin doesn’t manage to close above this mark, the analyst cautioned that prices could fall to a range between $74,000 and $69,000, a territory Bitcoin hasn’t occupied since November.
“At this point, it seems likely that over the next few weeks or months, Bitcoin will attempt to test this lower range of support,” he noted.
“Should we see a weekly close above this level, I believe the bottom will be confirmed for Bitcoin, and we won’t see a decline into this range,” he added, suggesting that breaking above a resistance level often leads to further upward movement.
Declining Bitcoin demand in the United States
Nonetheless, Bitcoin demand in the U.S. has been on a downward trend recently, influenced by various macroeconomic factors.
Bitcoin’s demand dropped by 103,000 BTC last week compared to the previous week, indicating the fastest rate of decline since July 2024, according to analytical insights.
Related: High-entry buyers are exerting sell pressure on Bitcoin, potentially establishing a price floor around $70K
The decrease in demand was attributed to growing uncertainties regarding inflation rates and new tariffs introduced by the U.S. administration.
On March 7, the chair of the Federal Reserve reiterated a cautious stance on adjusting interest rates.
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