Glassnode experiences BTC demand exhaustion close to $70K as Willy Woo says Bitcoin bear market stays in Section 1.
Bitcoin market knowledge reveals rising stress as analysts observe volatility, liquidity, and demand developments.
New experiences point out that the Bitcoin bear market should be creating, whereas on-chain metrics level to weakening demand close to key worth ranges.
Bitcoin Bear Market Seen in Early Section
On-chain analyst Willy Woo stated Bitcoin stays in “Section 1” of a broader bear market. He said that rising volatility marked the shift right into a downturn.
In line with Woo, volatility acts as a core development sign for quantitative analysts. He famous that volatility has continued to rise, which confirms ongoing weak spot.
I discover it helpful to border BTC bear markets in 3 phases:
Section 1 – The beginning, the place BTC liquidity has already damaged down (this occurred Q3 2025) and worth begins to observe downwards. BTC is a small asset so it is hyper delicate to liquidity. Due to this, it tends to guide…
— Willy Woo (@willywoo) February 18, 2026
Woo defined that volatility typically peaks throughout the center or later phases of a cycle. He added that smaller secondary peaks can seem close to a macro backside.
These peaks, he stated, are inclined to align with market capitulation. Nevertheless, he harassed that volatility alone doesn’t outline the complete Bitcoin bear market construction.
He additionally referred to inner liquidity and investor circulate fashions. Woo stated these fashions at the moment align with volatility readings. He divided the bear market into three phases.
Section 1 started within the third quarter of 2025 when liquidity situations deteriorated and costs declined.
Section 2 and Broader Market Danger
Woo stated Section 2 could start when world equities flip bearish. He described equities as slower markets that affirm risk-off situations over time.
Bitcoin, he stated, reacts sooner as a result of it’s smaller and extra delicate to capital flows.
Section 3 would begin as soon as liquidity stabilizes and capital outflows peak. Woo said that remaining capitulation normally happens throughout this stage.
He defined that buyers typically exit positions at that time. Liquidity situations then start to get well steadily.
When requested about his earlier $200,000 to $300,000 Bitcoin worth forecast from 2021, Woo acknowledged the error.
He stated derivatives markets altered cycle conduct. He added that broader market buildings required expanded analytical fashions past on-chain knowledge.
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Glassnode Flags BTC Demand Exhaustion Close to $70K
Blockchain analytics agency Glassnode reported indicators of demand exhaustion close to the $70,000 degree.
The agency stated every try and reclaim that worth since early February confronted resistance. Realized earnings exceeding $5 million per hour nonetheless led to rejection.
Since early February, each try and reclaim $70k has met demand exhaustion, with even >$5M/hour in web realized revenue triggering rejection.
Distinction that with Q3 2025’s euphoric section, when revenue realization surged to $200–350M/hour.
Ongoing regime of skinny liquidity makes a… pic.twitter.com/7XxWBWl7t2— glassnode (@glassnode) February 19, 2026
Glassnode in contrast present exercise to the third quarter of 2025. Throughout that interval, realized earnings ranged between $200 million and $350 million per hour.
The agency said that liquidity situations are actually skinny. In consequence, sustained motion into the $70,000 to $80,000 vary seems tough.
Glassnode’s knowledge suggests weaker purchaser energy at increased ranges. Mixed with rising volatility and lowered liquidity, the info factors to ongoing stress.
Market members proceed monitoring demand metrics and liquidity flows for indicators of stabilization.