Bitcoin (BTC) faces a crucial test as it struggles to reclaim the $89,000 level, which crypto analyst Matthew Hyland believes is essential to confirming a bottom in the current downtrend. In a video posted on X on March 13, Hyland emphasized that a weekly close above $89,000 would indicate a potential reversal for the leading cryptocurrency.
#BTC and #Crypto Video Update👇 pic.twitter.com/yHVOiDVsh0
— Matthew Hyland (@MatthewHyland_) March 13, 2025
Bitcoin Risks Further Decline Without $89K Close
Bitcoin last traded at $89,000 on March 7 before breaking below this key support level, plummeting to $78,523 on March 11. Currently hovering around $83,406, BTC remains vulnerable to further downside unless it manages to reclaim this critical threshold.
According to CoinGlass data, a breakout above $89,000 would liquidate nearly $1.6 billion in short positions, potentially fueling a stronger rally. However, failure to close the week above this level could result in a drop to the $74,000–$69,000 range, a price point not seen since November 2023.
“If we do get a weekly close above this area, I think the low is in for Bitcoin, and we are not going down to this area,” Hyland stated. He added that when Bitcoin breaks above key resistance levels, it often triggers further upside momentum.
Bitcoin Demand in the US Declines Amid Macro Uncertainty
Bitcoin’s struggles are also compounded by a decline in US demand. Data from CryptoQuant revealed that BTC demand fell by 103,000 BTC last week, marking the steepest contraction since July 2024. Analysts attribute this decline to macroeconomic uncertainties, including US inflation concerns and trade policies.
Former US President Donald Trump’s tariffs, imposed on February 1, have added to market unease, while Federal Reserve Chair Jerome Powell’s recent remarks on maintaining interest rates have further dampened investor sentiment.
Also Read: Is Altseason Over? How Bitcoin ETFs Are Reshaping Crypto Investment Trends
What’s Next for Bitcoin?
With Bitcoin down 15.42% over the past month, all eyes are on the $89,000 level. A decisive weekly close above this mark could set the stage for a recovery, while failure to do so may see BTC testing lower support levels. As traders await Bitcoin’s next move, market sentiment remains cautious amid ongoing economic uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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