Daily Crypto Signals: Bitcoin Rebounds to $70K, Ethereum and Solana Face Persistent Headwinds
Bitcoin stabilized above $70,000 following last week's dramatic sell-off that briefly pushed prices below $60,000, as renewed whale
Quick overview
- Bitcoin stabilized above $70,000 after a significant sell-off, with renewed whale accumulation suggesting potential market stabilization.
- Ethereum struggled to maintain the $2,100 mark amid inflationary pressures and concerns over layer-2 scaling solutions.
- Solana experienced a bearish trend, with analysts predicting a possible drop to $50 or lower due to technical patterns.
- Despite macroeconomic challenges, long-term holders of Bitcoin increased their holdings, indicating a divergence in market behavior.
Bitcoin BTC/USD stabilized above $70,000 following last week’s dramatic sell-off that briefly pushed prices below $60,000, as renewed whale accumulation and positive Coinbase Premium signals suggest potential market stabilization. Meanwhile, Ethereum ETH/USD struggled to maintain $2,100 amid inflationary pressures and layer-2 scaling concerns, while Solana SOL/USD continued its bearish descent with technical patterns pointing toward a possible drop to $50 or lower.
Bitcoin Holds Near $70,000
After losing almost $10,000 in a single session last Friday, the price of bitcoin stabilized at $70,000 on Monday. According to onchain data, long-term holders sold 245,000 BTC during the steep decline. This represented a cycle-relative extreme in distribution that usually happened during consolidation phases rather than full-blown downtrends, and it was the biggest daily outflow since December 2024. The total supply held by long-term investors actually rose from 13.63 million BTC in 2026 to 13.81 million BTC in spite of this strong selling pressure. This divergence suggests that while older cohorts decreased their exposure, new supply continues to age into long-term holder status as short-term traders withdraw during uncertain times.
The Coinbase Premium Index momentarily became positive for the first time since mid-January, signaling fresh purchasing interest from US institutional traders and encouraging indicators of the rebound. The two-week moving average of mean exchange outflows reached 13.3 BTC per withdrawal transaction on Sunday, more than double the late January number, indicating aggressive whale buildup, according to Binance statistics. Although macroeconomic headwinds continue to be a major concern, the long-term holder spent-output profit ratio recovered a position above 1 on Monday, indicating recovery following realized losses. Tight financial conditions and high treasury yields near 4.22% continue to put pressure on cryptocurrency liquidity and market demand, especially with the US Consumer Price Index data due Wednesday and 82.2% probability of no Federal Reserve rate drop in March.
Ethereum Tests $2,1000
After a vicious 43% decline over nine days that sent the altcoin to its lowest price since April 2025 on Friday, at $1,750, Ethereum was able to recover the $2,100 mark. With monthly futures trading at just a 3% annualized premium on Monday, considerably below the 5% neutral threshold that normally denotes balanced market conditions, ETH derivatives markets continue to reflect bearish sentiment despite a 22% relief bounce. Despite prices approaching $1,800 during the previous month, this lack of optimism has remained, and bears are likely to continue controlling price action in the foreseeable future unless bulls show a greater willingness to take risks.
Since ETH underperformed the larger cryptocurrency market capitalization by 9% in 2026, the network’s fundamental issues go beyond market sentiment. Ethereum’s inflationary trajectory is cited by critics; supply increase over the past 30 days has averaged 0.8%, which is a substantial decline from the nearly 0% inflation of the previous year. This reversal results from the intrinsic burn mechanism that rendered ETH deflationary in the past being weakened by decreased base layer activity.
On Tuesday, co-founder Vitalik Buterin admitted that the layer-2 scaling approach has been more challenging than expected, with optimistic rollup solutions now in use depending on multisig-controlled bridges that don’t adhere to Ethereum’s initial security requirements. With 58% of the total value of the blockchain sector locked—more than 65% when Base, Arbitrum, and Optimism are included—Ethereum continues to dominate the market in spite of these worries. It also generates $19 million in base layer fees during a 30-day period and an additional $14.6 million from layer-2 networks.
More Bearish Moves for Solana?
Solana saw significant technical deterioration, falling 38% over the previous 30 days to hit a two-year low of $67 on Friday. Several analysts cautioned that more weakness is likely. Since reaching a top of about $295 in January 2025, the altcoin has already dropped more than 72% of its value, confirming a classic head-and-shoulders pattern that usually indicates the continuance of bearish momentum over a number of timeframes. By adding the head’s height from the breakdown point, the pattern’s measured objective is $57, which indicates a possible 32% drop from the current levels of about $86.
Although analyst expectations vary greatly, they all trend lower; more pessimistic projections go as low as $30, while conservative estimates aim for $50. However, the monthly chart displays what some analysts refer to as a “massive head and shoulders” pattern with “nothing but air until $30.” The two-day chart indicates that SOL dropped below the crucial neckline at $120 on January 30, confirming the bearish structure. The Market Value to Realized Value extreme deviation price bands, which indicate that SOL found support at the lowest boundary close to $75 last week, give some cause for optimism.
A break below $75 could lead to accelerated selling in line with the head-and-shoulders downside targets. In the past, Solana prices have recovered significantly after testing this level, including an 87% rally to $140 within three weeks in March 2022. However, the FTX-related crash in November 2022 caused prices to deviate significantly below this band and ultimately bottom around $7 in December of that year.
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