As of early February 2026, the technical landscape for the cryptocurrency market has shifted dramatically. Bitcoin (BTC) has officially crossed the threshold into a technical bear market, following a steep 40% decline from its all-time high of $126,000.

While the market began the year with high hopes, persistent selling pressure has neutralized the demand side, leaving short-term investors facing significant losses.

Key Analysis from the Market Downturn:

• Technical Breakdown: Bitcoin is currently trading nearly 25% below its 200-day Exponential Moving Average (EMA), a key indicator for long-term trend strength. With the spot price significantly under the $90,000 "seller advantage" zone, analysts warn that the four-year halving cycle may be accelerating toward a cycle bottom.

• Support Levels to Watch: Market experts are looking at a "Realized Price" support near $50,000. If current trends continue, Bitcoin could spend the latter half of 2026 consolidating in the $50,000–$60,000 range.

• Ethereum’s "Drastic" Correction: The situation for Ethereum (ETH) is even more severe, with the asset down roughly 55% from its peaks. Despite the growth of the tokenization mega-trend, ETH remains under heavy pressure, with major institutional holders reportedly sitting on billions in unrealized losses.

• Institutional Risks: A primary concern for the market is the health of major accumulators like MicroStrategy and the selling pressure emerging from U.S. spot ETFs, which are showing average losses for the first time since their 2024 launch.

• Liquidity Crisis: Data from CryptoQuant indicates that the market is struggling with a "muted" liquidity environment, with stablecoin activity on exchanges hitting multi-month lows, making a rapid recovery less likely.