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Cryptocurrencies at the Mercy of Extreme Fear: What Technical Signals Indicate
The cryptocurrency market has entered February 2026 under intense pressure, with sentiment plunging into Extreme Fear. Key technical signals and market developments include:
Critical Support Break: Bitcoin has decisively broken below the psychological and technical stronghold of $80,000, reaching lows around $78,600.
Liquidation Cascade: A massive wave of liquidations, totaling over $2.5 billion on January 31 alone, has wiped out leveraged long positions, further fueling the downward momentum.
Bearish Indicators: Technical analysts note a "necessary reset" as the 21-week EMA crosses below the 50-week EMA, a mid-term bearish signal similar to previous crypto winters.
Dominance as Safe Haven: Despite the crash, Bitcoin's market dominance has risen to 57.3%, suggesting that investors are fleeing volatile altcoins for the relative perceived safety of the original digital asset.
Contrarian Bullish View: Analytics platforms like Santiment suggest that such extreme negative sentiment often acts as a bullish signal for "smart money" to begin accumulation while retail investors panic. $BTC $ETH #Fear #PanicOnTheExchange