Bitcoin’s latest wobble has merchants on edge, however the image is just not all one-way. Reviews notice heavy losses for late patrons, and on-chain figures present actual cash altering arms as positions are compelled closed. Markets moved quick; the temper did too.
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Concern And Greed Plunges To Single Digits
In response to CoinGlass, greater than 144,839 merchants have been liquidated within the final 24 hours, with complete liquidations of over $508 million and about 92% tied to lengthy bets.
Reviews from Various.me put the Crypto Concern and Greed Index at 5 out of 100 — a studying that has turned up solely 3 times since 2018.
That degree screams panic. But panic usually clears out probably the most fragile holders and leaves room for steadier arms to step in.
Realized Losses And Capitulation Indicators
Primarily based on studies from Glassnode, latest buyers are nonetheless reserving losses at a excessive fee — the seven-day shifting common for web realized losses was near $500 million per day.
That form of promoting stress seems brutal on a chart. On the similar time, promoting at scale can mark an finish to a pointy section of decline, as a result of it reduces the variety of individuals left to promote when costs fall additional.
Bitcoin Worth Motion
In the midst of all this, value strikes matter. Bitcoin rose to roughly $68,600 on Saturday, nevertheless it slid again and touched the mid-$64,000s after a wave of exits.
Merchants are watching a variety that shaped after the early-February drop to about $60,000. The coin stays roughly 48% under an October excessive of $126,000 and about 5.5% below the 2021 peak close to $69,000.
Information tied to US-Iran rigidity and normal risk-off buying and selling pushed some merchants towards safer belongings, which added gasoline to the pullback.
Sharpe Ratio Hits Uncommon Low
Analyst Michaël van de Poppe shared a chart displaying Bitcoin’s Sharpe Ratio at -38.4. That metric measures returns relative to threat; a quantity this low is uncommon.
It is a phenomenal chart.
It exhibits the Sharpe Ratio for #Bitcoin within the brief time period.
The important thing takeaway: the Sharpe Ratio has dropped to -38.38, which traditionally has marked “Low Danger” accumulation zones. The crimson circles spotlight each time the Sharpe Ratio dipped to related… pic.twitter.com/Nwp7SkfVP4
— Michaël van de Poppe (@CryptoMichNL) February 21, 2026
Traditionally, excessive adverse readings have generally lined up with moments when shopping for threat felt decrease, as a result of potential draw back had been squeezed out by huge selloffs.
That doesn’t assure a rebound, nevertheless it modifications how buyers view the trade-off between reward and threat.
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The place This Might Lead
Some technical watchers warn that extra assessments of assist may occur if uncertainty continues. Others level to the mix of heavy liquidations, deep worry readings, and huge realized losses as indicators {that a} base is perhaps forming.
Pasts on-chain figures present that panic and steep losses usually precede quieter durations the place patrons return slowly.
Featured picture from Unsplash, chart from TradingView
