Bitcoin analysts are closely monitoring the weekly close to assess the cryptocurrency’s price direction for the upcoming week, as both traditional and digital markets seem to be lacking a clear trend amid concerns over a global trade war and easing inflation worries.
According to an expert in the field, Bitcoin’s price may face further declines next week unless it secures a close above the $85,000 psychological threshold.
“Following the relief rally post-FOMC meeting and favorable CPI data, a weekly close above $85,000 is seen as crucial for regaining upward momentum,” the analyst stated, adding:
“A close beyond this point could help steer clear of a drop to $76,000 and indicate market strength, with $87,000 offering a more definitive bullish confirmation. While macroeconomic factors like stable rates and diminishing inflation favor risk assets, Sunday’s close will be pivotal.”
Bitcoin’s recent performance has shown a lack of momentum, with just a 0.9% increase noted over the past week. A disappointing weekly close might lead to revisiting the previous week’s low of $76,600.
### Analysts Suggest Focus on Long-Term Holder Accumulation
Although Bitcoin may face short-term setbacks, the recent relief rally post-FOMC meeting has been viewed as a positive indicator for investors.
Instead of focusing on immediate price movements, it’s advisable for investors to monitor long-term holder accumulation to better understand Bitcoin’s trend. The analyst remarked:
“Long-term holders continue to accumulate, as illustrated by on-chain data. This steady buildup since the dip is what deserves our attention.”
In fact, long-term holders have resumed their Bitcoin purchases in early February, amassing over $21 billion worth of Bitcoin since then.
The total Bitcoin supply controlled by long-term holders has surged by more than 250,000 BTC in less than two months, increasing from 13.1 million BTC on February 11 to over 13.3 million BTC by March 22.
Despite a series of positive developments in the regulatory and crypto space, fears surrounding global tariffs are expected to keep their grip on the markets at least until April 2.