Matrixport identifies an increasing risk of a more significant decline as Bitcoin falls below essential patterns amidst low trading volume.
Bitcoin (BTC) has broken out of an ascending broadening wedge, which is generally recognized as a bearish formation, experiencing a 6.78% decline that brought its price down to $87,630 at the time of reporting.
In a post on X dated February 25, analysts from Matrixport cautioned that this slippage might trigger further declines, particularly due to low trading activity limiting the demand for dip purchases.
“The probability of a deeper decline is increasing, especially since this breakdown is occurring during a phase of low trading activity, restricting the demand to buy the dip.”
Markus Thielen, independent analyst
While these analysts predict that Bitcoin prices may rebound later in the year, the recent technical breakdown has made them “more cautious.” Additionally, the impact of this pattern break is not limited to Bitcoin; Ethereum (ETH) has also fallen below its critical support range of $2,600 to $2,800, dropping to $2,375, further indicating market weakness.
Analysts at Spot On Chain also highlighted in an X post on February 25 that Ethereum “could be on track for its worst February if it drops below $2,400.”
“Historically, February has been bullish for ETH, with only one negative month in 2018. Yet, with a 23% drop already recorded, this could be another exception. Macroeconomic uncertainties, including new tariffs from the Trump administration, exacerbate the situation.”
Spot On Chain
In the meantime, U.S. spot Bitcoin exchange-traded funds have recorded their second consecutive week with outflows exceeding $500 million as of February 21.
As previously reported by crypto.news, a significant portion of these outflows originated from Grayscale’s GBTC, which saw $60.08 million exit the fund as it continued its streak of outflows following its transition from a trust structure. Bitwise’s BITB and Fidelity’s FBTC also contributed to the downturn with outflows of $16.58 million and $12.47 million, respectively.
