🔹 Crypto Market Structure Update – February 2026

The crypto market just experienced one of its most violent shake-outs since 2022. Bitcoin led the sell-off, briefly dipping below $61,000, before rebounding sharply into the $70,000–$71,000 zone. This pattern indicates capitulation followed by aggressive dip-buying, but the broader market structure remains fragile.
🔹 What Happened
Macro Risk-Off Pressure: Tech sell-off, Fed uncertainty, and liquidity tightening weighed on markets.
Forced Liquidations: Massive liquidations in futures markets triggered panic selling.
Extreme Sentiment: Fear & Greed Index plunged to extreme fear, often signaling local bottoms.
Price Action: Heavy volume confirmed panic selling, followed by a short-covering bounce.
This “flush then bounce” behavior is typical during bear markets.
🔹 Current Market Structure
Short-Term Trend: Bullish momentum after oversold conditions.
Medium-Term Trend: Still bearish, with lower highs since the October 2025 ATH.
Overall Insight: Current moves represent a relief rally, not a confirmed trend reversal.
A genuine structure shift requires higher highs and sustained support levels.
🔹 Key Bitcoin Levels to Watch
Support Zones:
$68,000 – $70,000 (current pivot)
$64,000 – $65,000 (recent dump low)
$60,000 – $61,000 (critical psychological support)
Resistance Zones:
$72,000 – $75,000 (short-term rebound ceiling)
$78,000 – $80,000 (major trend-flip area)
Daily/weekly closes above $80K would signal a bullish structure shift. Failure to hold $65K could trigger another leg down.
🔹 Altcoin Behavior
Highly correlated with BTC — no real decoupling.
Fell harder during panic, bouncing faster now.
High volatility + thin liquidity = increased risk for traders.
🔹 Volume & Liquidity Insights
Trading volume surged to multi-month highs, indicating capitulation + short squeezes.
Liquidity remains thin, so sharp swings can continue in either direction.
🔹 5 Key Trader Instructions
Reduce Leverage & Position Size – Avoid overexposure in volatile markets.
Prioritize Risk Management – Protect capital rather than chasing FOMO trades.
Trade Key Levels – Focus on major support/resistance zones, not emotions.
Wait for Confirmation – Do not assume a bull run until structure shifts are validated.
Practice Patience & Discipline – Relief rallies may look tempting, but bear market dynamics remain.
Bottom Line:
Capitulation has likely washed out weak hands, and a short-term bottom may be forming. However, the bear market structure is not yet broken. The next decisive move depends on whether BTC can hold support and reclaim $80K+ with volume.