The BTC/USD chart shows Bitcoin dipping below $89K today—the first time since November 2024, when the leading cryptocurrency surged on news of Donald Trump’s presidential victory.

We previously posted:

→ 28 January: Bitcoin Holds Above $100K—For Now

→ 11 February: How Trump Affects Bitcoin’s Price

In those analyses, we highlighted the extreme trading volumes during Trump’s inauguration and the heightened crypto market volatility. These conditions may have allowed major players to take profits after the 2024 rally. The subsequent price action has confirmed this bearish outlook.

Technical Analysis of BTC/USD

Since the surge in market activity during Trump’s inauguration (marked by a red arrow), Bitcoin has:

→ Formed a descending channel

→ Failed to break the psychological $100K level (black line)

→ Dropped below key support around $91K

A rebound attempt from the lower boundary of the long-term blue channel (blue arrow) was unsuccessful. In this environment, negative news could have aided bears in pushing Bitcoin towards the lower boundary of the channel.Bitcoin’s Price Crash on 25 February

Bitcoin’s decline may have been driven by:

→ Market concerns over the ByBit hack, where around $1.5 billion in ETH was stolen

→ South Korean government sanctions on crypto exchange Upbit

→ A drop in US tech stocks ahead of Nvidia’s earnings report and PCE Price Index data, signaling investor caution toward risk assets

This bearish momentum has resulted in an almost 8% drop in under 24 hours, with over $1 billion in long positions liquidated across crypto exchanges. The RSI indicator is now near multi-month lows.

Bitcoin Price Outlook

BitMEX co-founder Arthur Hayes predicted on X that Bitcoin could fall to $70K if major hedge funds exit US Bitcoin ETFs.

This suggests further downside within the red descending channel. However, Bitcoin is near the lower boundary of this channel, meaning it could act as short-term support.

Source: ACTIONFOREX