Matrixport sees growing risk of deeper decline as Bitcoin slips below key pattern amid low trading activity.
Bitcoin (BTC) broke out of an ascending broadening wedge, a typically bearish pattern, with a 6.78% drop that pushed its price down to $87,630 as of press time.
In an X post on Feb. 25, Matrixport analysts warn the slippage could lead to further declines, especially with low trading activity limiting demand for dip-buying.
“The likelihood of a deeper decline is increasing, particularly since this break is occurring during a period of low trading activity, which may result in limited demand to buy the dip.”
Markus Thielen, independent analyst
While the analysts expect Bitcoin prices to rise later in the year, the current technical breakdown makes them “more cautious.” Moreover, the pattern break isn’t just affecting Bitcoin only. Ethereum (ETH) has also fallen below its key $2,600 to $2,800 support range, dropping to $2,375, further signaling weakness in the market.
Analysts at Spot On Chain also warned in an X post on Feb. 25 that Ethereum “could be heading for its worst February if it drops below $2,400.”
“Historically, February has been bullish for ETH, with only one red month in 2018. But with a 23% drop already, this could be another exception. Macroeconomic uncertainty, including new tariffs from the Trump administration, adds to the pressure.”
Spot On Chain
Meanwhile, U.S. spot Bitcoin exchange-traded funds have experienced their second consecutive week of over $500 million in outflows leading up to Feb. 21.
As crypto.news reported earlier, the majority of outflows came from Grayscale’s GBTC, which saw $60.08 million exit the fund as it continued its outflow streak following its conversion from a trust structure. Bitwise’s BITB and Fidelity’s FBTC also contributed to the negative momentum, with outflows of $16.58 million and $12.47 million, respectively.
Source: https://crypto.news/heres-why-bitcoin-price-dropped-below-90k/