Market Analysis February 23, 2026: BTC Breaks Consolidation Area Amid Consistent Institutional Sell-offs

Article Summary:

• Bitcoin Tests $65,000 Foundation: Bitcoin price corrected below the important area of $65,118, this is the price area to defend. If it fails, the potential correction could go all the way to $60,000.
• Ethereum Awaits Directional Certainty: $1,747 to $2,152 is the Ethereum price consolidation area. If the price can reclaim above $2,152, the Ethereum price is likely to strengthen to the $2,623 level.
• Solana Consolidates in a Narrow Area: Solana price is currently moving close to the $76.60 support level. This level needs to be maintained to prevent a potential deeper correction.
• Institutional Sell-off Signals: The Bitcoin Spot ETF has been trending net outflows for 5 consecutive weeks.

Crypto Market Analysis February 23, 2026

The overall crypto market capitalization opened with a decline of around -4.2% this morning after moving relatively flat in recent days. This decline also pressured the price of Bitcoin as well as major altcoins such as Ethereum and Solana with varying degrees of correction.

The correction comes amid escalating military tensions, potentially reinforcing risk-off sentiment among investors. However, on-chain data still shows a tug-of-war between buying and selling pressure on Bitcoin.

Bitcoin (BTC) Analysis

Bitcoin is currently in a crucial phase. After moving sideways in the consolidation area between $65,118 to $71,751, the price is starting to show signs of weakness.

• Down Scenario: At the opening of the February 23 daily candle stick, there is a potential breakdown or breakout below the consolidation area. If the price fails to return above $65,118, the next downside target is expected to be the February 6 low around $60,000.
• Recovery Scenario: On the contrary, if BTC is able to stay within its consolidation zone, it will breathe new life into the market and trigger positive momentum for altcoin price movements.

Ethereum (ETH) Analysis

Ethereum is showing a similar pattern to Bitcoin, but with a wider price range. Currently, ETH is stuck in the consolidation area of $1,747 to $2,152.

• Downside Scenario: If selling pressure forces the price out of the lower boundary of the consolidation, Ethereum will most likely seek support at the harmonic support at the $1,497 level.
• Recovery Scenario: However, if ETH is able to breakout above the $2,152 level, the upside could potentially strengthen towards the $2,623 to $2,765 target.

Solana Analysis (SOL)

Among other top-tier assets, Solana forms a relatively smaller consolidation area, which indicates a price explosion (either up or down) could happen in the near future.

• Downside Scenario: If the price drops below $76.60 (support area), investors should be wary of are test of the low at $67.50.
• Recovery Scenario: The $89.20 level (resistance area) is the key barrier; a break above this price will take SOL towards the Support Become Resistance (SBR) level of $95.26.

Market Sentiment: Extreme Fear Dominance

Market psychology indicators are currently showing very depressed conditions. Based on CMC Crypto Fear and Greed Index data, the market is at level 14, which is categorized as Extreme Fear.

This reflects deep anxiety among investors compared to last month when it was still at 34 (Fear). The decline was triggered by sharp price fluctuations, with the index hitting a low of 5 in early February.

Flow of Funds and Exchange Liquidity

Looking at the on-chain data, Bitcoin’s movement on exchanges (Exchange Netflow) shows volatile dynamics. On February 23, the price of Bitcoin corrected to $64,600, which was accompanied by erratic activity in and out of the exchanges. This signaled a trade-off between selling pressure from short-term asset holders and attempts to accumulate at lower prices by institutional investors.

Institutional Fund Flow Analysis

Cash inflows from institutions that were previously the driving force of the price are now showing weakness. The Bitcoin Spot ETF market in the United States is facing its most difficult period since last year.

• Negative Trend Continues: The Bitcoin Spot ETF recorded five consecutive weeks of net outflows. This is the longest downward trend recorded since the February-March 2025 period.
• Outflow Statistics: In the last four trading days up to February 20, total fund outflows amounted to $316 million. The decline was consistent from Tuesday to Thursday with a peak on Wednesday of $133 million.
• Cumulative Position: Despite short-term drawdowns, cumulatively the Bitcoin ETF has still recorded a positive net inflow of $54.01 billion since its initial launch, with total assets under management (AUM) now standing at $85.31 billion.

Conclusion

This week is a “wait and see” period. Extreme Fear conditions have historically often signaled oversold points, but technically, confirmation of Bitcoin’s price movement below the $65,118 level is a real risk that should not be ignored.

Investors are advised to monitor the daily closing price at the consolidation areas mentioned in order to reference a safer market entry or exit strategy.

Disclaimer: All information presented in this article has been prepared for general educational and informational purposes. This content is not intended as financial advice, recommendations, solicitation to buy or sell certain crypto assets, nor the basis for financial decision making. Any investment decision is entirely the responsibility of the reader, taking into account their financial condition, investment objectives, and risk tolerance.