Thecryptocurrency market plunged for the third consecutive session on Thursday,February 5, 2026, with Bitcoin dropping 3.5% to test $70,000, the lowest levelsince November 2024, before recovering slightly to $71,340.
XRP crashedover 7% below $1.40, Ethereum fell to $2,068 (lowest since May 2025), andDogecoin battles support at $0.10 as $775 million in leveragedpositions were liquidated.
In this articleI analyze XRP/USDT, BTC/USD, ETH/USDT and DOGE/USDT charts, answering thequestion of why crypto is going down today.
Why Bitcoin Is Going Down?Breaking Through $74K Opens Path to $68K
Bitcoin'sprice fell for the third straight session, dropping 3.5% to test $70,052,the lowest since November 2024, before recovering to $71,340, down 1.5%. Thisrepresents a decisive break below my target range of $74,000 that I've beendiscussing since November.
WhileI forecasted a potential bounce at $74,000, I practice reactiveanalysis rather than wishful thinking analysis, which means I was preparedfor this scenario as well. With the breakdown confirmed, I'mnow targeting $68,000, where the 200-week exponentialmoving average (200 WMA) runs on the weekly chart. That's where I'llexpect a demand reaction.
If thatlevel also fails to hold, I have my long-term ultra-bearish target around $52,000,where the 100% Fibonacci extension based on the current trend lands. One thingis certain: pressure on cryptocurrencies continues to persist.
Bitcoin isnow approximately 45% below its October peak near $126,000,with the recent drawdown accelerating as expectations that BTC would neverrevisit sub-$100K levels were shattered.
JoelKruger, crypto strategist at LMAX, offers perspective on the brutal selloffwhile identifying potential bottoming signals.
"Priceaction across crypto has been undeniably heavy over the past 24 hours, withbitcoin acting as the primary drag on broader sentiment and ETH followingsuit," Kruger notes. However, he points to emerging signs of exhaustion.
Followme on X for more crypto market analysis: @ChmielDk
XRP Price Analysis:Testing $1.40 Opens Path to $1.25 or $0.53
XRP is alsofalling for the third consecutive session, and today is one of the strongestdeclines this year, losing over 7% and testing levels below $1.40.If we exclude October's flash crash, this is the lowest value since November2024.
Breakingthe local support defined by April 2025 lows opens the pathtoward targets in the $1.25-1.26 range, the minimums fromthe aforementioned flash crash. If this level also fails to hold, I'm targetingjust $0.53 on the XRP chart.
What wouldneed to happen for me to change my bearish stance? Such scenarios are reallyfar away, XRP would need to return above $2.20, where the 200-dayEMA currently sits.
Dogecoin Price Analysis:Fighting $0.10 Support
Dogecoin (DOGE), like BTCand XRP, is falling for the third consecutive session and is fighting withlocal support around the round level of $0.10, which coincides withthe lowest levels since September 2024.
Dogealready broke its important support at the end of January, located justbelow $0.12, and is currently in short-term consolidation atmedium-term lows. Bearish pressure remains strong here, and breaking this levelwill open the path to declines toward 2024 minimums around $0.08.
To relievepressure from Dogecoin's shoulders, we would need to wait until around $0.16,where the 200 EMA sits.
Ethereum Price Analysis:$2,068 Tests June 2025 Support
Ethereum'sprice, unlike the three charts mentioned above, is also falling for the thirdconsecutive session, deepening this year's lows on Thursday to $2,068—thelowest value since May 2025.
Supportdesignated by June 2024 lows around $2,100 continues to holdprice in check, and today we also see a reaction at this level. As a result,ETH is currently losing only 0.7% and changing hands at $2,132.
Althoughbearish pressure persists, even if the current support breaks, the next supportsits around $1,760 (March 2025 lows), and the final ultimatelevel around $1,400 (April 2024 yearly lows).
Accordingto my technical analysis, Ethereum prices could fall to $1,725 or lowerin February, aligning with the inverted cup and handle downside target,which historically achieves its expected target with an 82% success rate.
I'llabandon bearish scenarios when ETH returns at least to the consolidation rangedrawn from November to the end of January, between $2,750 and $3,430.
Why Is Crypto CrashingToday?
$775 Million LiquidationCascade
Thursday'scrypto crash triggered a massive $775 million liquidation event acrossmajor exchanges as Bitcoin plunged to $70,000. What began as a minor technicalcorrection "accelerated into a mass capitulation of long positions,"according to market analysis.
The violentflush caught leverage traders off guard, with open interest ballooningto unsustainable levels over the past week driven by retail FOMO andaggressive perpetual positioning. When the floor gave way, algorithmic sellingpressure was instantaneous.
Recent datashows over $800 million in leveraged liquidations impactingaround 165,000 traders, with the majority coming from long positions. Thisfollows the February 1 "Black Sunday II" event that saw $2.2billion liquidated in 24 hours, the largest single-day wipeout sinceOctober 2025.
Hawkish Federal ReservePolicy
"Therecent downturn in the cryptocurrency market has been swift and severe, withanalysts attributing the decline to the appointment of Kevin Warsh as theprospective chair of the Federal Reserve, amid expectations that he mightreduce the Fed's balance sheet," according to Reuters.
Signs ofongoing high interest rates have pushed the U.S. Dollar Index (DXY)above 97.5, making investors less interested in riskier assets likeBitcoin. The Fed's January 28 hold at 3.50-3.75% with Powell stating he's"not in a hurry to cut" continued to weigh on risk assets, with realyields remaining elevated.
Institutional OutflowsAccelerate
Biginvestors such as BlackRock have sold large amounts of Bitcoin, with $373.8million leaving spot BTC ETFs recently. Bitcoin ETFs have continuedbleeding with cumulative multi-billion dollar outflows since mid-January,removing spot bid support and forcing correlated selling in leveraged products.
Technical Targets Table
With clearbreaks below key support levels across major cryptocurrencies, here are my nexttechnical targets:
Crypto Price Analysis, FAQ
Why is crypto fallingtoday?
Cryptocrashed for the third consecutive session on February 5, 2026, with Bitcointesting $70,000 (lowest since Nov 2024), triggering $775 million inliquidations. Kevin Warsh's Fed Chair appointment raised expectations forbalance sheet reduction and hawkish policy, pushing DXY above 97.5 and makingrisk assets less attractive.
How low can Bitcoin go?
Bitcoinbroke my November target of $74,000 and tested $70,052 before recovering to$71,340. The next technical target is $68,000 where the 200-week EMA providescritical support, with an ultra-bearish scenario targeting $52,000 (100%Fibonacci extension). Analysts Peter Brandt and Michael Burry identify supportlevels at $60,176 and $47,824 if $70,000 breaks. LMAX's Joel Kruger notesBitcoin is "roughly 45% below its October peak" with "hallmarksof capitulation now in place."
Why is XRP crashing?
XRP crashedover 7% on Thursday to below $1.40—the lowest since November 2024 excludingOctober's flash crash. Breaking April 2025 local support opens the path to$1.25-1.26 (October flash crash lows), with the long-term ultra-bearish targetat $0.53. Bull invalidation requires a return above $2.20 where the 200-day EMAcurrently sits, representing a 57% rally from current levels.
This article was written by Damian Chmiel at www.financemagnates.com.