Bitcoin's Weekly Close Above $85,000 Crucial for Bullish Momentum

Bitcoin's price trajectory for the upcoming week is under scrutiny, with analysts closely monitoring the weekly close. According to Ryan Lee, a chief analyst, a weekly close above $85,000 is critical for Bitcoin to resume its upward momentum. Lee noted that a close above this level could prevent a drop to $76,000 and signal strength, while $87,000 would provide even clearer bullish confirmation. Macro factors such as steady rates and cooling inflation support risk assets, but the Sunday close will be decisive.

Bitcoin's price has shown little momentum recently, rising only marginally over the past week. A disappointing weekly close could see the price revisit the previous week’s low of $76,600. This underscores the importance of the $85,000 threshold, as failing to close above this level could trigger a correction.

Despite short-term fluctuations, market analysts are advising investors to focus on long-term holder accumulation as a key indicator of Bitcoin's trend. A market analyst highlighted that long-term holders have been steadily accumulating Bitcoin since the beginning of February. This accumulation, which has seen over $21 billion worth of Bitcoin bought, is a positive sign for the market. The total supply held by long-term holders has increased by over 250,000 BTC in less than two months, indicating a strong underlying demand.

Global trade war fears and regulatory developments continue to influence market sentiment. A research analyst noted that these factors will pressure the markets until at least April 2. Despite these challenges, the relief rally after the Federal Open Markets Committee (FOMC) meeting was seen as a positive sign for market participants. The easing of inflation concerns and steady rates have provided some support for risk assets, including Bitcoin.

In summary, the upcoming weekly close is pivotal for Bitcoin's price trajectory. A close above $85,000 is essential to avoid a correction to $76,000 and to signal continued bullish momentum. Long-term holder accumulation remains a key indicator of Bitcoin's trend, and while short-term fluctuations may occur, the underlying demand from long-term holders is a positive sign for the market.