Bitcoin (BTC) must close the week above $89,000 to signal an end to the short-term downtrend

Bitcoin (BTC) last traded at $89,000 on March 7, a level Hyland considers crucial since it was the support area where Bitcoin ultimately ended up “breaking down below.”

Crypto analyst Matthew Hyland has said that Bitcoin must close the week above $89,000 to signal an end to the short-term downtrend.

“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K,” said Hyland in a video posted to X on Monday (March 13).

If the cryptocurrency fails to close above it, it may head toward a lower range of between $74,000 to $69,000, a level Bitcoin hasn’t seen since November.

“It probably is likely at this point that going into the coming weeks or the coming months, Bitcoin will likely test this lower range at some point of support,” said Hyland.

“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,” he added.

If Bitcoin does break above the resistance level, it typically leads to further upside.

However, demand for Bitcoin in the US has been declining recently due to macroeconomic factors.

Bitcoin's demand fell by 103,000 BTC last week compared to the previous week, "marking its fastest pace of contraction since July 2024," according to CryptoQuant.

The recent decline in Bitcoin's demand in the US was due to uncertainty around US inflation rates and US President Donald Trump's imposed tariffs on Feb. 1, said CryptoQuant.

On March 7, Federal Reserve chair Jerome Powell stated that he was in no hurry to adjust interest rates.