Bitcoin developer Matt Carallo told the Unchained podcast on Thursday that quantum-computing fears are not behind Bitcoin's latest slide, arguing Ether would be outperforming if they were. He noted Ether is down 58% since early October and around $1,957, while Bitcoin has fallen 46% from its October high of $126,100 to about $67,162.

Bitcoin slipped to a $65,650 low and is holding beneath $67,500 and the 100‑hour simple moving average. A push above the $67,400–$68,000 resistance zone could open $68,800 and $69,500, while failure risks revisiting $66,000, $65,650 and potentially $65,050–$64,500. Hourly MACD is losing bearish momentum as RSI stays above 50.

Bitcoin’s price is stabilizing, but on-chain data shows a 42% slide in active addresses and a 47% fall in new address creation since the 2021 cycle peak. Recent analysis also indicates about $27.89 billion in unrealized losses, a 23% value drawdown, with ETF and self-custody holders under pressure around key support levels near $58,700 and $54,700.

Bitcoin fell to a low of $60,000 after flashing a sell signal near $95,000, and was trading at $66,988 with a 1.75% daily loss and a 46% drawdown from its $126,000 peak. Key on-chain and market metrics, including a Sharpe Ratio of -38, an all-time high Stock to Flow Ratio rising from 127 to 261, and the MVRV Z Score dropping to $0.445, suggest a possible cycle bottom even as price consolidates between $65,000 and $70,000. Despite extreme bearish sentiment and weak market structure, heightened scarcity and historical patterns could set the stage for a future recovery if selling pressure eases.

Bitcoin has repeatedly failed to close above $70,000 and remained capped below that level, trading around $66,980 at the time of writing. According to analyst Sherlock, a rebound into $72,000 to $76,000 could be a bull trap, citing Strategy's 714,644 BTC at a $76,052 average cost and additional supply risks from spot ETF positioning.

In late 2025, Bitcoin climbed to a record $125,000 before sliding to about $66,888, marking a drawdown of nearly 46% amid growing fear and weakening demand. By February 2026, network data, ETF flows and falling active addresses showed a market dominated by risk reduction and uncertainty rather than strong retail participation.

Bitcoin’s recent pullback has seen wallets holding 0.1–1 BTC steadily accumulate, boosting their balances by about 1.05% since the October price peak. In contrast, holders with 1–10 BTC have trimmed exposure to a 38‑month low, while SOPR data shows both long‑ and short‑term participants increasingly transacting near breakeven or at losses.

In Q4 2025, references to "AI disruption" on earnings calls surged to 126, triple the level a year earlier, while Bitcoin fell 24% even as Nvidia extended gains from a 39% jump in 2025. Analysts see this widening gap between Bitcoin and tech stocks, along with weakening confidence in the U.S. dollar, as a sign of growing AI-linked financial risk that could eventually support Bitcoin as a long-term hedge. Arthur Hayes argues that an AI-driven rotation out of crowded tech trades and into digital assets could be the trigger for new all-time highs.