‘Resilient’ Bitcoin holders defend BTC, but bear floor sits 20% lower: Glassnode

CoinTelegraph

by Biraajmaan Tamuly

February 19, 2026

AI-Generated Deep Dive Summary

Bitcoin’s price remains trapped in a tight demand zone established in 2024, but historical bear market patterns suggest this structure may break, leading to new lows. According to Glassnode data, liquidity conditions have softened as Bitcoin’s price compresses within this range. Meanwhile, the supply of BTC continues to shift into long-term, retail-linked wallets, indicating a potential long-term holding strategy among investors. Exchange activity has also decreased, signaling reduced speculative trading and a possible lack of immediate market interest. The cryptocurrency market experienced a structural shift in January when Bitcoin lost a key on-chain valuation level, entering a corrective phase. This shift aligns with historical bear market dynamics, where market structures break down after extended periods of price appreciation. The current demand zone, combined with subdued liquidity and reduced exchange activity, suggests that the market is in a delicate state, balancing between correction and potential further decline. The interplay of technical analysis and on-chain data paints a complex picture for Bitcoin’s short-term outlook. While long-term holders may view the current environment as an opportunity to accumulate, shorter-term traders and investors could face heightened volatility and uncertainty. The ongoing capital rotation across the market, coupled with the technical breakdown, underscores the importance of staying informed for crypto enthusiasts and professionals alike. For readers interested in cryptocurrency, understanding these market dynamics is crucial. Bitcoin’s price movement is not only influenced by traditional technical indicators but also by on-chain data that provides insights into investor behavior and market sentiment. The interplay between these factors could shape the trajectory of Bitcoin’s price in the coming months, making it essential for crypto investors to monitor both macroeconomic trends and micro-level wallet activity. Ultimately, while Bitcoin’s resilience is evident in its long-term holding patterns, the current market structure suggests that challenges lie ahead. Whether you’re a retail investor or a professional trader, staying attuned to these signals will be key to navigating the evolving cryptocurrency landscape.

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Originally published on CoinTelegraph on 2/19/2026