Bitcoin (BTC) has fallen below the critical $90,000 support level, with analysts warning that the sell-off could deepen. BTC is currently trading at $87,630, marking a 6.78% decline and breaking out of an ascending broadening wedge, a bearish technical pattern.
Matrixport Cautions of a Deeper Bitcoin Decline
In a Feb. 25 post on X (formerly Twitter), Matrixport analysts highlighted the increasing risk of further losses, citing low trading activity and weak 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 Bitcoin is expected to recover later this year, Matrixport’s analysts have turned cautious in the short term as key technical breakdowns signal market weakness.
Ethereum Struggles as Well—Poised for Its Worst February?
Bitcoin’s downturn is not an isolated event—Ethereum (ETH) has also fallen below its key $2,600-$2,800 support range, dipping as low as $2,375.
According to Spot On Chain analysts, Ethereum may be heading for its worst February on record:
“$ETH 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.”
Adding to the bearish sentiment, macroeconomic uncertainty, including new tariffs from the Trump administration, has fueled market pressure.
Bitcoin ETFs See Continued Outflows
Another major factor contributing to Bitcoin’s weakness is sustained outflows from U.S. spot Bitcoin ETFs.
- Bitcoin ETFs have now recorded over $500 million in outflows for the second consecutive week.
- Grayscale’s GBTC led the outflows, with $60.08 million exiting the fund.
- Bitwise’s BITB ($16.58 million) and Fidelity’s FBTC ($12.47 million) also contributed to the sell-off.
What’s Next for Bitcoin?
Despite expectations of long-term growth, Bitcoin’s recent technical breakdown and low market liquidity raise concerns about short-term downside risks. If trading volume remains weak, BTC could see further declines before finding strong support.
For now, traders remain cautious as Bitcoin’s price action dictates the broader crypto market’s trajectory.
