Bitcoin has come under pressure after breaking a bearish pattern, dropping more than 6%. Analysts warn of the risks and potential consequences of this event.
Bitcoin's Fall and Analyst Warnings
The cryptocurrency Bitcoin fell below a key bearish pattern, dropping over 6.78% to $87,630. In a recent X post on February 25, Matrixport analysts noted that this decline could lead to further decreases, especially considering the current low trading activity.
Technical Analysis and Impact on Other Cryptocurrencies
Along with Bitcoin, Ethereum is also under pressure, having fallen below its key support range of $2,600 — $2,800 to $2,375. These changes signal a weakness in the market. Analysts at Spot On Chain in their X post on February 25 also warn that Ethereum could experience its worst February if prices fall below $2,400.
Bitcoin ETF Market Losses
Meanwhile, U.S. spot Bitcoin ETFs experienced their second consecutive week of over $500 million in outflows leading up to February 21. The majority of outflows came from Grayscale’s GBTC, which saw $60.08 million exit. 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 overall state of the cryptocurrency market points to increasing risks and potential weakening of activity. Analysts remain vigilant and continue to monitor the situation.
