Bitcoin’s monthly Bollinger Bands have compressed to their narrowest reading on record, a setup analysts associate with powerful follow-up moves. Some chartists highlight that similar volatility squeezes have historically preceded major rallies, although others point to a looming 50- and 200-period moving average death cross and elevated retail long positioning as downside risks. Additional on-chain data shows a deeply negative short-term Sharpe ratio and repeated profit-taking above $70,000, suggesting the market is approaching a key inflection zone.

On a Tuesday when Bitcoin traded under $68,000, data showed that short-term whale addresses are carrying net unrealized losses of 22% while long-term whales remain profitable above a realized price of $41,626. Large-holder inflows to Binance have climbed in February, and on-chain metrics suggest current conditions look more like a redistribution phase than a full-scale capitulation among veteran holders.

Ether fell about 20% in February and briefly slipped under $2,000, while more than 2.5 million ETH moved into accumulation addresses and over 30% of supply remained staked. Derivatives data shows open interest at $11.2 billion, elevated leverage and sizable liquidation clusters around $1,909, $2,200 and above, as a possible Adam and Eve bottom pattern on the four‑hour chart signals room for a rally toward the $2,473–$2,634 zone.

Bitcoin slipped below $67,400 after briefly trading above $70,000, while futures and order book data pointed to strong buy-side interest near spot price. Analysts highlighted a Chicago Mercantile Exchange futures gap around $80,000–$84,000 and record demand from "accumulator" addresses holding about 372,000 BTC on Feb. 15. The largest bid skew in more than two years and reduced long-term holder selling were cited as factors that could support a retest of the $80,000 area.

Bitcoin set a weekly low near $65,500 and has fallen for four straight days, while funding rates in futures remain deeply negative since early February. According to CryptoQuant, the 7-day average turned negative for the first time since March 2023 and November 2022, and analysts say crowded shorts could face a squeeze if $58,000 holds.

On Thursday, Bitcoin and Ether hit intraday lows of $66,171 and $1,912. Bloomberg analysis indicates ETH spot ETF holders face steeper losses, with assets at $11.27 billion versus $30.5 billion and an estimated $3,500 cost basis, while BTC ETFs sit at $85.76 billion, down from a $170 billion peak in October 2025.

On Wednesday, Bitcoin fell to $65,800, slipping beneath key intraday trend lines. According to analysts, a widening thin-liquidity pocket between $66,000 and $60,000 increases the likelihood of a move toward the $59,800 yearly low. Heatmaps indicate limited resting liquidity down to $60,500, while repeated failures near $70,000–$72,000 keep momentum soft.

Bitcoin has fallen for three consecutive days, dropping below $66,000 after a failed push above $70,000 and returning toward its 2026 low. Onchain and derivatives data indicate spot-led selling on Binance, a negative Coinbase premium signaling weak US participation, and declining open interest with net outflows of roughly -$2.8 billion over 30 days.

On Tuesday, Ether (ETH) struggled to stay above $2,000, and analysts said the token's 31% decline in 2026 mirrors a past-cycle fractal that implies a deeper consolidation. Glassnode's URPD and derivatives heat maps flag demand between $1,300–$2,000, while CryptoQuant tracked net exchange outflows above 220,000 ETH, including roughly 158,000 ETH from Binance last Thursday.