Bitcoin Price Falls Below $90K: Matrixport Warns of Further Declines

Bitcoin’s price dropped below $90,000 on February 25, following a 6.78% decline that brought it down to $87,630, breaking out of an ascending broadening wedge pattern. This is typically considered a bearish technical pattern, and analysts from Matrixport are warning that Bitcoin could face even deeper declines, particularly with trading activity remaining low, which could limit demand for dip-buying.

In a post on X, Markus Thielen, an independent analyst at Matrixport, explained that the likelihood of further price declines is increasing. “The break is occurring during a period of low trading activity, which may result in limited demand to buy the dip,” Thielen noted. This technical breakdown makes analysts more cautious, even though they expect Bitcoin prices to rise later in the year.

Bitcoin’s decline is not isolated. Ethereum is also experiencing weakness, having fallen below its key support range of $2,600 to $2,800, dropping to $2,375. Analysts at Spot On Chain are concerned about Ethereum’s potential to have its “worst February” if it falls below $2,400. February has historically been a bullish month for ETH, but with a 23% drop already, this could be an exception, compounded by macroeconomic uncertainty, such as the new tariffs introduced by the Trump administration.

Additionally, U.S. spot Bitcoin exchange-traded funds (ETFs) have seen significant outflows, totaling over $500 million for the second consecutive week leading up to February 21. The majority of these outflows came from Grayscale’s GBTC, which experienced a $60.08 million exit as it continues 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.

The combination of these bearish technical patterns and low trading activity has raised concerns about a potential further decline in Bitcoin’s price in the short term.