Bitcoin’s Weekly Close Above $85,000 Essential to Avoid Correction
Bitcoin analysts indicate that achieving a weekly close above $85,000 is crucial to avoid a price correction to $76,000. Current market conditions reflect mixed signals amid trade war apprehensions and declining inflation concerns. Long-term Bitcoin accumulation is highlighted as an essential factor for ongoing market strength. Overall, the upcoming weekly close will be a significant determinant for Bitcoin’s price movement.
Analysts are observing Bitcoin’s weekly closing price to forecast its future movements as uncertainty looms in both traditional and cryptocurrency markets. Current market dynamics, characterized by global trade war concerns and diminishing inflation worries, could influence Bitcoin’s valuation significantly. According to Ryan Lee, chief analyst at Bitget Research, Bitcoin must close the week above the psychological threshold of $85,000 to mitigate the risk of a dip to $76,000.
Lee described the importance of this closing price: “A close above this level could prevent a drop to $76,000 and signal strength, while $87,000 would provide even clearer bullish confirmation.” He emphasized that macroeconomic factors such as stable interest rates and easing inflation tend to favor risk assets, making the Sunday close a pivotal moment. Currently, Bitcoin has only gained 0.9% over the past week, making a downturn back to last week’s low of $76,600 a possibility.
Market analyst Enmanuel Cardozo from Brickken suggests that despite potential short-term declines, the recent upward movement following the Federal Open Markets Committee (FOMC) meeting signals positive market sentiment. He recommends that investors focus on the long-term accumulation trends among Bitcoin holders, noting, “Long-term holders continue to stack, as we’ve seen in on-chain data, the accumulation by these holders, quietly building since the dip is what we should be paying attention to.”
Since the beginning of February, long-term holders have accumulated over $21 billion worth of Bitcoin, increasing their total holdings by more than 250,000 BTC. This rise in holdings demonstrates confidence, as the total Bitcoin supply held by long-term holders has grown from 13.1 million BTC on February 11 to over 13.3 million BTC by March 22.
Furthermore, according to research analyst Nicolai Sondergaard at Nansen, ongoing global tariff anxieties will persistently affect the markets, particularly until a notable date of April 2. Analysts remain vigilant as various regulatory and cryptocurrency developments unfold, shaping the future potential of Bitcoin.
In summary, Bitcoin’s immediate price trajectory is highly contingent on achieving a weekly close above $85,000. The sentiments shared by analysts suggest that short-term fluctuations may arise, yet long-term holder activity remains a vital indicator of market confidence. With critical macroeconomic influences at play, market participants should navigate these conditions prudently while awaiting decisive outcomes in the upcoming weeks.
Original Source: cointelegraph.com
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