Crypto Faces Ongoing Challenges in Uncertain Market
The ongoing sell-off pressure in the cryptocurrency market is evident, as Bitcoin and Ethereum face challenges in achieving significant momentum in the context of broader financial market volatility. Both assets have prolonged their corrective phases, reflecting the subdued performance in traditional markets, as a risk-off sentiment persists in shaping investor outlook, analysts noted. Bitcoin has fallen beneath the $67,000 threshold, encountering significant resistance near the $70,000 level. Riya Sehgal, notes that the recent decline in Bitcoin’s price aligns with a wider market trend, primarily influenced by risk aversion in the financial markets. “Bitcoin’s latest drop closely tracked high-growth US tech stocks, indicating the sell-off was driven by a broader risk-off sentiment across financial markets,” Sehgal said.
In the interim, macroeconomic dynamics persist in shaping sentiment. Polymarket bettors assign a 93 percent probability that the Federal Reserve will maintain rates in March, with merely a 7 percent likelihood of a 25-basis-point reduction. “In parallel, the Fed is expected to inject $16 billion into the economy this week, a move that could temporarily ease liquidity pressures but also reinforce volatility across both traditional and crypto markets,” Sehgal noted. Vikram Subburaj asserts that “any recalibration of rate-cut expectations could spill over into crypto.” This observation holds particularly true given the recent volatility of cryptocurrencies in response to fluctuations in bond yields and the strength of the dollar. That said, on-chain data continues to characterize the current phase as one of distribution rather than capitulation. According to weekly on-chain analysis, Bitcoin is currently positioned significantly beneath its projected ‘true market mean’ of approximately $79,000. The realized price is positioned slightly below $55,000. This significant disparity, as noted by Subburaj, indicates a sustained overhead supply, implying that long-term holders remain largely inactive, while short-term participants are influencing price movements within a wide range of $60,000-$72,000.
Prominent analysts’ desks, have reiterated this perspective and identified $55,000 as the forthcoming significant stress-test threshold. Moreover, the inflows into US-listed spot Bitcoin ETFs have provided minimal directional clarity. Data available up to February 17 indicated a modest net inflow of approximately $14.8 million, suggesting selective accumulation rather than a definitive risk-on shift. At the time of writing, complete flow data for February 18 remained pending. There exists, nonetheless, a palpable sense of reluctance among institutional allocators. At last check, Bitcoin was trading around 67,592, lower by 0.80 per cent, with a 24-hour trading volume of 33.25 billion. The market capitalisation of the digital asset hovers around $1.35 trillion, having declined from its peak of $126,198 attained in October 2025. According to analysts, Bitcoin’s technical charts indicate a descending channel, with resistance situated around $68,800–$70,000. “A break below $66,000 could accelerate losses toward $64,200, while sustained momentum above $68,800 may trigger a short-term recovery,” stated Sehgal. Subburaj, on the other hand, observed that Bitcoin is currently experiencing a consolidation phase around $67,000, with the secondary demand zone identified between $63,000 and $60,000. Any inability to maintain this range may lead to a reexamination of downside potential, specifically towards the $55,000 realized-price anchor indicated by on-chain data. “Repeated rejections near $70,000 suggest overhead supply remains intact,” stated Subburaj.
In the realm of altcoins, the challenges faced by Ethereum are reflected in the performance of other significant cryptocurrencies. Ethereum has faced challenges in surpassing the $2,000 threshold, whereas other leading altcoins such as Binance Coin and Solana maintain a cautious trading stance. “Overall, the market continues to indicate consolidation, demonstrating resilience sufficient to avert a disorderly breakdown,” Subburaj added. At last check, Ethereum was trading around $1,997, reflecting a 1.23 percent increase. However, it has encountered persistent challenges in regaining and maintaining a position above the $2,000 threshold, with tenuous support at $1,950.Ethereum continues to encounter significant resistance at $2,060, while exhibiting tenuous support in the vicinity of $1,950,” stated Sehgal. Given the prevailing market conditions, analysts recommend that investors exercise caution in their approach. Investors ought to focus on position sizing, steer clear of leverage-intensive directional bets, and implement staggered entries or tactical hedges to navigate volatility until macro signals and ETF flows exhibit a clear supportive trend. “Look for lower price points to accumulate steadily without infusing heavy capital,” said Subburaj.
