Bitcoin must close above $89K to confirm trend reversal, analyst warns
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Bitcoin (BTC) remains at a critical juncture, with analysts emphasizing that a weekly close above $89,000 is necessary to confirm the recent downtrend has ended. Crypto analyst Matthew Hyland highlighted this key resistance level, noting that failure to reclaim it could lead Bitcoin toward a potential retest of the $74,000–$69,000 range.
Bitcoin last traded at $89,000 on March 7 before breaking below this crucial support level, subsequently declining to $78,523 on March 11. The cryptocurrency has since stabilized in the low $80,000s, currently trading at approximately $83,406. According to CoinGlass data, a move above $89,000 would result in the liquidation of approximately $1.60 billion in short positions, potentially triggering further upside momentum.
However, if Bitcoin fails to close above $89,000, Hyland warns that further downside remains likely, with BTC potentially testing lower support levels not seen since November. “Going into the coming weeks or months, Bitcoin will likely test this lower range at some point unless we see a strong weekly close above resistance,” Hyland explained. Historically, BTC breaking above key resistance levels has led to extended bullish momentum.
Declining US Demand Weighs on Bitcoin’s Price
Adding to market concerns, demand for Bitcoin in the U.S. has been on the decline, driven by macroeconomic uncertainty. According to CryptoQuant, Bitcoin demand contracted by 103,000 BTC last week—the fastest pace of decline since July 2024. Analysts attribute this trend to heightened concerns over U.S. inflation and the impact of tariffs imposed by President Donald Trump on February 1.
Further complicating the outlook, Federal Reserve Chair Jerome Powell reiterated on March 7 that the Fed is in no hurry to adjust interest rates. This stance has contributed to market hesitancy, as investors assess the potential impact of sustained higher borrowing costs on risk assets like Bitcoin.
Investors should closely monitor Bitcoin’s ability to reclaim the $89,000 resistance level, as a failure to do so could confirm a prolonged period of price consolidation or further declines toward lower support zones.
Bitcoin last traded at $89,000 on March 7 before breaking below this crucial support level, subsequently declining to $78,523 on March 11. The cryptocurrency has since stabilized in the low $80,000s, currently trading at approximately $83,406. According to CoinGlass data, a move above $89,000 would result in the liquidation of approximately $1.60 billion in short positions, potentially triggering further upside momentum.
However, if Bitcoin fails to close above $89,000, Hyland warns that further downside remains likely, with BTC potentially testing lower support levels not seen since November. “Going into the coming weeks or months, Bitcoin will likely test this lower range at some point unless we see a strong weekly close above resistance,” Hyland explained. Historically, BTC breaking above key resistance levels has led to extended bullish momentum.
Declining US Demand Weighs on Bitcoin’s Price
Adding to market concerns, demand for Bitcoin in the U.S. has been on the decline, driven by macroeconomic uncertainty. According to CryptoQuant, Bitcoin demand contracted by 103,000 BTC last week—the fastest pace of decline since July 2024. Analysts attribute this trend to heightened concerns over U.S. inflation and the impact of tariffs imposed by President Donald Trump on February 1.
Further complicating the outlook, Federal Reserve Chair Jerome Powell reiterated on March 7 that the Fed is in no hurry to adjust interest rates. This stance has contributed to market hesitancy, as investors assess the potential impact of sustained higher borrowing costs on risk assets like Bitcoin.
Investors should closely monitor Bitcoin’s ability to reclaim the $89,000 resistance level, as a failure to do so could confirm a prolonged period of price consolidation or further declines toward lower support zones.