Bitcoin’s price action remains in focus as analysts point to $89,000 as a critical level for confirming a bottom.
A failure to reclaim it could push BTC toward $69,000, erasing recent gains and intensifying bearish sentiment.
$89K Holds the Key to Bitcoin Price Recovery
Bitcoin last traded at $89,000 on March 7 before falling to $78,523 on March 11.
Crypto analyst Matthew Hyland believes this level remains crucial for Bitcoin’s uptrend.
Hyland said in a video posted to X on March 13,
“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K.”
Bitcoin price is currently trading near $83,406. If it breaks above $89,000, it would liquidate approximately $1.6 Billion in short positions, according to CoinGlass.
However, failure to close above this level could lead to a drop to $74,000 or even $69,000—levels not seen since November.
Hyland argues that a weekly close above $89,000 would indicate renewed bullish momentum. He added,
“If we do get a weekly close above this area, I think the low is in for Bitcoin.”
Macroeconomic Factors Weigh on BTC Demand
CryptoQuant reported a decline of 103,000 BTC last week, marking the fastest contraction since July 2024.
Analysts attribute this drop to uncertainty around U.S. inflation rates and trade tensions.
On March 7, Federal Reserve Chair Jerome Powell reiterated that he was in no rush to adjust interest rates.
Meanwhile, tariffs imposed by President Donald Trump on Feb. 1 have fueled economic uncertainty, reducing investor appetite for risk-on assets like Bitcoin.
The European Union (EU) responded to U.S. tariffs by announcing retaliatory measures set to take effect on April 1.
Analysts warn that escalating trade tensions could trigger further market instability, potentially pushing Bitcoin below key support levels.
Marcin Kazmierczak, chief operating officer at RedStone, noted that counter-tariffs indicate potential further retaliation. He said,
“An ongoing dispute could see Bitcoin fall below its crucial support level of $75,000.”
However, he said he believes BTC could recover given strong stablecoin and real-world asset (RWA) demand.
Treasury Market Volatility Adds Pressure
Increased volatility in the U.S. Treasury market is another factor weighing on Bitcoin.
The Merrill Lynch Option Volatility Estimate Index (MOVE), which tracks 30-day expected volatility in Treasury bonds, has surged to 115—the highest level since Nov. 6.
This spike in bond market volatility reduces risk appetite in traditional and crypto markets.
Following the 2024 U.S. election, a decline in the MOVE index coincided with Bitcoin price rally from $70,000 to $108,000.
Now, with the MOVE index climbing 38% in three weeks, analysts suggest risk aversion could delay any major BTC breakout.
Matt Mena, Crypto Research Strategist at 21Shares, remains cautiously optimistic. He stated,
“With inflation cooling and recession fears still looming but not worsening, Bitcoin could be on the verge of its next major breakout, pushing past the stubborn sub-$90K range.”
Liquidity Battle Between $69K and $89K
On-chain data shows Bitcoin is trapped between key liquidity zones.
IntoTheBlock highlights support at $79,270 and $69,450, with resistance between $84,296 and $86,753.
If Bitcoin price falls below $79,270, it risks a slide to $69,000, a level that once marked its 2021 peak before being surpassed in March 2024.
Conversely, breaking $86,753 could trigger renewed buying, but analysts caution that a strong sell wall exists in this range. Hyland remains firm in his stance:
“If Bitcoin doesn’t close above $89K, we will likely test lower ranges in the coming weeks.”
As Bitcoin price hovers near $83,000, traders will closely watch its weekly close.
If BTC reclaims $89,000, it could spark fresh upside momentum. Otherwise, a deeper correction toward $69,000 may be in play.
The post Bitcoin Price Must Close Above $89K to Avoid Steeper Decline appeared first on The Coin Republic.
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