Key Takeaways
- Bitcoin hovers around $62,900, recording a 7.5% weekly decline while remaining confined within a $60K–$70K trading corridor
- Major altcoins including ETH, XRP, SOL, and DOGE experienced losses ranging from 8–11% amid intensifying sell pressure reaching five-year peaks
- Concerns about AI disruption are driving capital away from both technology equities and digital assets simultaneously
- Major US indices including the Dow, S&P 500, and Nasdaq declined more than 1% Monday, though futures showed modest recovery Tuesday
- Technical analysts identify a bearish pennant pattern on Bitcoin’s chart, with $70K serving as a critical resistance level
Bitcoin retreated to $62,900 on Tuesday, continuing a gradual downtrend that has characterized much of February’s price action. The leading cryptocurrency is currently down 2.1% over 24 hours and has shed 7.5% across the weekly timeframe.
The digital asset has remained confined within a $60,000 to $70,000 corridor following a sharp market correction on February 5. Market observers suggest this range is increasingly resembling a consolidation phase rather than a foundation for upward momentum.
Alternative cryptocurrencies are experiencing more severe pressure compared to bitcoin. Ethereum declined to $1,829, representing an 8% weekly loss. XRP shed 10.8%, Solana tumbled 11.3%, and Dogecoin dropped nearly 10%.
Blockchain analytics provider CryptoQuant noted that selling pressure among altcoins has climbed to levels not witnessed in five years. Token holders are liquidating positions into a market characterized by limited buying interest beyond the largest digital assets.
This type of distribution pattern doesn’t generate the dramatic price collapses that typically attract bargain hunters. Instead, it produces a gradual erosion that proves challenging for active traders to navigate profitably.
Technical Analysis Reveals Consolidation Pattern
Alex Kuptsikevich, chief market analyst at FxPro, described bitcoin’s recent market behavior as consolidation rather than recovery. He noted the formation of a bearish pennant pattern on the daily timeframe.
A breakdown beneath the mid-$65,000 zone would validate additional downside risk. Conversely, a breakout above $70,000 would invalidate the bearish technical formation completely.
Bitcoin currently trades 48% below its record high and sits 5.5% beneath its 2021 peak of $69,000. Extended periods within this range without upward resolution increase technical selling pressure.
AI Disruption Concerns Impact Equities and Digital Assets
A research note from Citrini Research highlighted an emerging “AI scare trade” affecting markets this week. The analysis cautioned that artificial intelligence developments could significantly disrupt businesses spanning delivery services, payment processing, and software development.
This sparked liquidation across technology-focused equities. When traditional markets shift toward risk aversion, cryptocurrencies typically follow suit as both asset classes compete for the same investment capital.
The Dow Jones Industrial Average experienced significant losses Monday, partially driven by a 13% single-session plunge in IBM shares. Both the S&P 500 and Nasdaq composite declined over 1%, with the S&P 500 sliding into negative territory for the year.
US equity index futures demonstrated modest improvement Tuesday morning. Dow futures advanced 0.1%, S&P 500 futures gained 0.2%, and Nasdaq 100 futures increased 0.3%.
Upcoming Events and Data Releases
Artificial intelligence company Anthropic is scheduled to host a product announcement Tuesday. Historical patterns show previous Anthropic unveilings have catalyzed sell-offs across cybersecurity and enterprise software sectors.
Consumer confidence figures are expected Tuesday. Major earnings reports from Nvidia, Salesforce, and Snowflake are slated for Wednesday release.
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