Technical Study of Bitcoin and Crypto Markets: Analyzing Bearish Pressure and Powell Controversy

Technical writing about cryptocurrency markets requires a deep understanding of price action, resistance levels, and macroeconomic influences. As of February 2026, Bitcoin faces critical pressure from multiple directional forces—ranging from federal investigations against Fed Chair Jerome Powell to cooling risk appetite in global equities markets. The Crypto Daybook Americas offers a comprehensive technical breakdown of market developments.

Technical Analysis: Bitcoin Facing Out of Bearish Pressure

Bitcoin is forming complex price action after an initial surge to $92,000 during Asian trading hours in early January. From a technical perspective, BTC has struggled to maintain support at the $90,500 level, but new data from February shows a lower positioning at $78.69K, reflecting a -6.34% pullback over the past week.

The most significant technical observation is the persistent bearish trendline from historical highs. The resistance level at the former $92,000 has become a psychological barrier difficult to surpass in the current macroeconomic environment. Traders are monitoring the Relative Strength Index (RSI) and moving averages to gauge potential momentum reversals.

Price Action Analysis: Understanding Trading Sessions

Technical writing should highlight geographic trading patterns. During the Asian session, we saw initial bullish sentiment pushing BTC to the $92,000 range. However, during European trading hours, momentum shifted dramatically, resulting in a pullback to $90,500. This consolidation pattern reflects uncertainty between risk-on and risk-off sentiment.

The current price at $78.69K indicates a deeper correction, suggesting sustained selling pressure. For technical traders, this behavior serves as an early warning of a longer-term downtrend if support levels are not regained.

Macroeconomic Backdrop: Powell Investigation and Treasury Yields

The investigation launched against Fed Chair Powell directly impacts market psychology and technical patterns. Federal prosecutors focus on Powell’s testimony regarding the $2.5 billion central bank facility renovation. This uncertainty has translated into higher treasury yields—the 10-year US yield rose to 4.197%, while the 2-year yield stands at 3.54%.

For the cryptocurrency market, elevated yields mean higher opportunity costs for risk assets. Technical analysis should consider this inverse relationship. As treasury yields rise, Bitcoin and emerging assets typically experience outflows as investors reallocate into safer fixed-income instruments.

Privacy Coins and Selective Outperformance: Technical Analysis

Amid bearish pressure on Bitcoin and Ethereum, privacy-focused coins show relative strength. Monero declined from a record high of $598 but remains robust at $571, with +15% gains in 24 hours—significantly outperforming BTC’s -6.34% drawdown.

Specialized altcoins like RARE (-12.31%), RENDER (-7.36%), and ZEC (-10.94%) display divergent technical patterns. While RARE suffered a deeper correction, RENDER and ZEC maintained more stable technical support. This indicates selective risk exposure within the crypto ecosystem.

ETF Flow Analysis: Reallocation Rather Than Liquidation

Market structure technical analysis should include ETF flow patterns. From January 5 to 9, spot Bitcoin ETFs recorded a net outflow of $681 million despite a trading volume of $19.5 billion. This pattern is critical: it suggests active repositioning rather than wholesale liquidation.

In contrast, Ethereum ETFs recorded a weekly outflow of $69 million. The largest divergence occurred in XRP and SOL ETFs, which continued to attract capital, indicating a “risk-on” behavior in select assets. The technical implication is clear: traders are not fully risk-off but are selective in their allocations.

Technical Indicators: Volatility and Derivatives Market Signals

The 30-day implied volatility indices for Bitcoin and Ethereum remain at multi-week lows— a bearish technical signal. Low volatility in derivatives markets indicates weak momentum and slow expected price moves. For options traders, this suggests limited profit opportunities from short-term directional bets.

Chainlink (LINK) tested a critical bearish trendline from August highs. A technical breakout or breakdown at this level will be a key indicator of broader altcoin sentiment. The current price at $9.94 shows consolidation in a critical support zone.

Market Microstructure: Analyzing Broader Equity Spillover

Technical analysis should not isolate crypto markets. The S&P 500 closed down -0.93% at 6,966.28, the Nasdaq Composite fell -1.18%, and E-mini Nasdaq-100 futures slid -0.84%. This spillover effect directly impacts crypto valuations as risk assets.

The DXY (US Dollar Index) declined -0.30% to 98.84, supporting potential upside for Bitcoin in technical terms. However, strong equities selling pressure has overridden dollar weakness benefits, dominating price action.

Key Technical Takeaways and Forward Guidance

Technical analysis should provide actionable insights. Bitcoin faces layered resistance at the $85,000-$92,000 band. A sustainable breakout above this zone requires a Fed pivot signal or significant macroeconomic shift. On the downside, the $75,000 level remains a critical long-term support.

Derivative markets signal weak momentum in the near term, while ETF flows show selective risk appetite. Privacy coins are outperforming, indicating specific narrative-driven demand. For technical traders, focus should be on volume-weighted price levels, trendline breaches, and relative strength comparisons among major assets.

As Powell’s investigation continues to unfold and Treasury yields remain elevated, Bitcoin will strive to find equilibrium. Technical analysis is clear: despite interest rate expectations remaining volatile, risk asset sentiment remains fragile amid broader macroeconomic headwinds.