Matrixport Sees Growing Risk of Deeper Decline

Matrixport warns of potential further declines in Bitcoin (BTC) as it breaks out of an ascending broadening wedge pattern, marking a typically bearish trend with a 6.78% drop to $87,630 as of press time.

In a post on February 25, the analysts cautioned that the slippage could lead to even deeper declines, especially with low trading activity limiting demand for dip-buying.

> Markus Thielen, independent analyst:
> “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.”

Despite expectations for rising Bitcoin prices later in the year, the current breakdown makes analysts more cautious. Notably, Ethereum (ETH) has also seen declines, falling below its $2,600 to $2,800 support range down to $2,375, indicating a weakening market overall.

> Spot On Chain’s Warning:
> “$ETH could be heading for its worst February if it drops below $2400. 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.”

Additionally, U.S. spot Bitcoin exchange-traded funds have recorded substantial outflows, exceeding $500 million for the second consecutive week before February 21, chiefly from Grayscale’s GBTC.

Conclusion

As traders and investors navigate macroeconomic uncertainties, including new tariffs, the ongoing decline in Bitcoin and Ethereum prices suggests a need for caution in the crypto market.