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Bitcoin’s caller wobble has traders connected edge, but the representation is not each one-way. Reports enactment dense losses for precocious buyers, and on-chain figures amusement existent wealth changing hands arsenic positions are forced closed. Markets moved fast; the temper did too.
Fear And Greed Plunges To Single Digits
According to CoinGlass, much than 144,839 traders were liquidated successful the past 24 hours, with full liquidations of implicit $508 cardinal and astir 92% tied to agelong bets.
Reports from Alternative.me enactment the Crypto Fear and Greed Index astatine 5 retired of 100 — a speechmaking that has turned up lone 3 times since 2018.
That level screams panic. Yet panic often clears retired the astir fragile holders and leaves country for steadier hands to measurement in.
Source: CoinGlassRealized Losses And Capitulation Signals
Based connected reports from Glassnode, caller investors are inactive booking losses astatine a precocious complaint — the seven-day moving mean for nett realized losses was adjacent to $500 cardinal per day.
That benignant of selling unit looks brutal connected a chart. At the aforesaid time, selling astatine standard tin people an extremity to a crisp signifier of decline, due to the fact that it reduces the fig of radical near to merchantability erstwhile prices autumn further.
Source: Alternative.meBitcoin Price Action
In the mediate of each this, terms moves matter. Bitcoin roseate to astir $68,600 connected Saturday, but it slid backmost and touched the mid-$64,000s aft a question of exits.
Traders are watching a scope that formed aft the early-February driblet to astir $60,000. The coin remains astir 48% beneath an October precocious of $126,000 and astir 5.5% nether the 2021 highest adjacent $69,000.
News tied to US-Iran tension and wide risk-off trading pushed immoderate traders toward safer assets, which added substance to the pullback.
Sharpe Ratio Hits Unusual Low
Analyst Michaël van de Poppe shared a illustration showing Bitcoin’s Sharpe Ratio astatine -38.4. That metric measures returns comparative to risk; a fig this debased is rare.
This is simply a phenomenal chart.
It shows the Sharpe Ratio for #Bitcoin successful the abbreviated term.
The cardinal takeaway: the Sharpe Ratio has dropped to -38.38, which historically has marked “Low Risk” accumulation zones. The reddish circles item each clip the Sharpe Ratio dipped to similar… pic.twitter.com/Nwp7SkfVP4
— Michaël van de Poppe (@CryptoMichNL) February 21, 2026
Historically, utmost antagonistic readings person sometimes lined up with moments erstwhile buying hazard felt lower, due to the fact that imaginable downside had been squeezed retired by large selloffs.
That does not warrant a rebound, but it changes however investors presumption the trade-off betwixt reward and risk.
Where This Could Lead
Some method watchers pass that much tests of enactment could hap if uncertainty continues. Others constituent to the operation of dense liquidations, heavy fearfulness readings, and ample realized losses arsenic signals that a basal mightiness beryllium forming.
Pasts on-chain figures amusement that panic and steep losses often precede quieter periods wherever buyers instrumentality slowly.
Featured representation from Unsplash, illustration from TradingView
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