Bitcoin Price Drops Below $90k Amid Low Trading Activity and Market Weakness
Bitcoin has dropped below $90,000, falling to $87,630 as it breaks an ascending broadening wedge pattern. Analysts express concerns about the potential for further declines due to low trading activity and negative sentiment across the cryptocurrency market, as shown by Ethereum’s dip and substantial fund outflows.
Bitcoin (BTC) has recently experienced a significant decline, dropping 6.78% to $87,630 after breaking out of an ascending broadening wedge, a pattern commonly associated with bearish trends. Analysts from Matrixport have cautioned that this move could lead to further losses, particularly due to the current low trading volumes that restrict demand for purchasing on dips.
Markus Thielen, an independent analyst, remarked on the situation, stating, “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 an eventual price rebound later in the year, the current technical breakdown has made analysts more wary.
The bearish sentiment is not limited to Bitcoin; Ethereum (ETH) has also seen a downturn, slipping below its crucial support range of $2,600 to $2,800, with current prices at $2,375. Spot On Chain’s analysts expressed concerns that Ethereum could be on track for its poorest February performance, citing a historical trend of bullish month outcomes for ETH, disrupted this year with a significant 23% drop.
Further compounding the issue, U.S. spot Bitcoin exchange-traded funds have reported over $500 million in outflows for the second week leading up to February 21. Grayscale’s GBTC has seen the most significant outflow, with $60.08 million leaving its fund. Other funds, such as Bitwise’s BITB and Fidelity’s FBTC, have also contributed to this negative trend, indicating a broader downturn in market sentiment.
In summary, Bitcoin’s recent decline below $90,000 has raised alarms among analysts, leading to concerns about potential further price drops amid low trading activity. Ethereum is also under pressure, suggesting a weaker market overall. The significant outflows from U.S. Bitcoin exchange-traded funds further highlight the market’s challenges. Although a recovery is anticipated later in the year, caution prevails given the current technical indicators.
Original Source: crypto.news
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