Bitcoin Slides Below Sixty Five Thousand Amid Whale Selling

Bitcoin, the world’s largest cryptocurrency, has entered a turbulent phase as it struggles to hold support above $65,000, with recent market action reflecting both intense selling pressure and a cautious optimism among some investors. Over the past week, Bitcoin’s price has experienced dramatic swings, falling more than 5% within just two hours on Sunday evening, February 22, 2026, and dipping as low as $64,500, according to reporting by Bitcoin Magazine Pro and CoinDesk. This sudden drop marked several historic milestones: Bitcoin closed its sixth consecutive negative week, its sixth straight week below the 100-week moving average, and its third consecutive week beneath the 2021 high. For many in the crypto community, these developments signal a market under pressure, teetering between capitulation and the hope of a bottom. The recent decline followed a period of relative stability, with Bitcoin trading mostly flat near $68,000 in the days preceding the sharp move. Yet, even before the plunge, the broader seven-day trend pointed to a mild decline and a lack of strong bullish momentum, as noted by CryptoQuant and Glassnode analysts. Prediction markets, however, paint a more optimistic picture—at least on the surface. On Polymarket, the most popular bet for February, holding a 17% probability, was that Bitcoin would surpass $75,000 before month’s end. This outcome attracted over $88 million in volume and millions in active liquidity. But the confidence behind this bullish scenario has waned considerably, with the probability of hitting $75,000 declining by more than 50% as of February 22. The next most likely scenario, with a 12% probability, predicts Bitcoin will fall below $60,000. This split in sentiment reflects the market’s growing uncertainty, with some traders bracing for a deeper correction while others cling to hopes of a late-month rally. Technical indicators bolster the case for caution. Between November 15, 2025, and February 16, 2026, Bitcoin’s daily chart showed a lower high, while the Relative Strength Index (RSI) formed a higher high. This pattern, known as hidden bearish divergence, typically signals the continuation of an existing downtrend rather than a bullish reversal. Since this divergence appeared, Bitcoin has already corrected nearly 6%. As long as this signal persists, the odds of a breakout toward $75,000 remain slim, despite the optimism reflected in some prediction markets. On-chain data reveals that long-term holders—investors who have kept their Bitcoin for more than a year—have slowed their selling but have not yet resumed significant accumulation. On February 5, 2026, long-term holders reduced their holdings by a massive 244,919 BTC (over a 30-day rolling change), but by February 21, this figure had improved to a reduction of 81,019 BTC, marking a 67% drop in selling pressure. While this slowdown has helped stabilize prices, these holders remain net sellers, not buyers. Without renewed accumulation from these influential players, Bitcoin lacks the strong support needed to mount a sustained rally. Whale behavior further underscores the market’s indecision. The largest whales, those holding between 100,000 and 1 million BTC, accumulated approximately 13,460 BTC recently, increasing their collective holdings from 676,540 BTC to 690,000 BTC. Conversely, smaller whales—those with between 10,000 and 100,000 BTC—reduced their holdings by about 10,000 BTC over the same period. This split suggests a lack of unified conviction among large holders, with some preparing for a rebound and others remaining defensive. Exchange data from CryptoQuant highlights that whales are now dominating inflows, with the exchange whale ratio reaching 0.64—the highest level since 2015. The average deposit size has also climbed to 1.58 BTC, a figure not seen since June 2022, indicating that larger players, rather than retail traders, are driving current exchange activity. Meanwhile, total inflows to exchanges have dropped about 60% from the early February spike, but they remain elevated at roughly 23,000 BTC on a seven-day average, leaving the market exposed to further volatility. Recent buyers have been realizing heavy losses, a dynamic confirmed by Glassnode. Earlier in February, the seven-day exponential moving average (EMA) of Bitcoin’s Net Realized Profit and Loss plunged to -$1.24 billion per day, meaning newer investors were collectively locking in more than $1 billion in losses daily. By February 23, this figure had improved to about -$480 million per day, indicating that while panic selling has slowed, the market is still in a base-building phase rather than a robust uptrend. Market sentiment has soured sharply. The Crypto Fear & Greed Index fell to 5, placing it deep in the “Extreme Fear” zone. This level of fear is typically seen during periods of capitulation, when investors are most pessimistic about future price prospects. Adding fuel to the fire, macroeconomic pressures have intensified. According to Bloomberg, U.S. President Donald Trump recently raised a proposed global tariff rate from 10% to 15% after the Supreme Court invalidated previous emergency tariffs. Trump then re-imposed tariffs under Section 122 of the Trade Act of 1974, unsettling broader markets and pushing traditional safe havens like gold and silver higher. Bitcoin, meanwhile, has continued to trade more like a high-beta risk asset than a defensive hedge in this climate. Support and resistance levels are now front and center in traders’ minds. Bitcoin’s price structure shows it is trapped between two major cost basis zones. Resistance sits near $72,200, close to a cluster where around 149,000 BTC were accumulated between $72,600 and $73,200. This zone represents a significant barrier, as many holders may sell to exit at breakeven if the price approaches. On the downside, strong support exists between $64,300 and $63,800, with approximately 150,000 BTC accumulated in that range. A break below $63,300 could open the door to a further drop toward the $60,000 level—a scenario that prediction markets assign a 12% probability. Despite the bearish signals, some large institutions are still increasing their Bitcoin exposure. Abu Dhabi’s Mubadala Investment Company raised its stake in BlackRock’s iShares Bitcoin Trust to 12.7 million shares, worth about $630 million as of December 31, 2025, up 46% from the previous quarter. Al Warda Investments also increased its IBIT holdings to 8.22 million shares, with both funds together holding over 20 million shares valued at more than $1.1 billion. Meanwhile, Strategy, led by executive Michael Saylor, purchased another 2,486 BTC for $168.4 million last week, bringing its total holdings to 717,131 BTC and continuing a 13-week accumulation streak despite a $5.8 billion unrealized loss. Looking ahead, analysts warn that if key support levels fail, Bitcoin could decline as far as $40,000. While some institutional positioning hints at possible base formation—large traders in CME Bitcoin futures have reduced short exposure, moving from net short to net long—most caution that these signs alone are not enough to confirm a bottom. The risk of further downside remains if broader market sentiment does not improve and if whales continue to dominate selling activity. As Bitcoin hovers near critical support, the market stands at a crossroads—caught between the fading hopes of a bullish breakout and the growing reality of a prolonged correction. For now, all eyes are on whether the $65,000 level can hold, or if the world’s most famous cryptocurrency is destined for another leg down.