bitcoin It has fallen back below $68,000, making the previous bounce above $70,000 look weaker.
The largest cryptocurrency briefly attempted to reclaim the level on Monday, only to be pushed towards $67,000 as sellers emerged around the breakout zone. Early Wednesday it was trading near $68,000, more or less stable throughout the day, but now under what had been short-term support.
That change matters. The range of $68,000 to $70,000 had acted as a floor during the first half of February. Missing it increases the risk of rallies being shorted rather than bought, and a clear break below $67,000 would refocus attention on $65,000 and possibly $60,000.
Bitcoin, Ethereum and BNB have fallen as much as 3% in seven days, while smaller tokens like Zcash’s ZEC and Cosmos’ ATOM have seen gains of up to 20% in the last week. Historically, when large companies fall behind, the rest of the market struggles to maintain bullish momentum.
“The decline of the largest coins is an ominous sign for the smaller ones, as it could soon drag them down at an accelerated pace,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email.
On-chain analysts at CryptoQuant say the market has entered a stress phase, but has yet to see the type of major losses that typically mark a definitive cycle bottom, suggesting the easing may not be over.
Adding to the concern, quantum computing has resurfaced in market conversations, with some investors questioning the long-term crypto risk as developers push back timelines that put significant threats decades away.
Meanwhile, Blockstream CEO Adam Back criticized a proposed BIP-110 update aimed at reducing spam on the network, arguing that it could create new reputational risks by changing the rules on which transactions should be allowed, as CoinDesk noted.
Institutional flows are also changing. The Harvard endowment cut more than 20% of its bitcoin ETF exposure in the fourth quarter, although it remains the fund’s largest public crypto holding.
Outside of cryptocurrencies, Asian stocks advanced in thin Lunar New Year trading. The MSCI Asia Pacific Index rose 0.6%, boosted by gains in Japan, while US futures rose after recent AI-related turmoil cooled.
For Bitcoin, however, the technical battle remains central. Recover $70,000 and momentum will be restored. If it fails again, the market will begin to price in a deeper pullback.
