The cryptocurrency market extended its losing streak for a third consecutive session on Thursday, February 5, 2026, as selling pressure intensified across major digital assets. Bitcoin, the flagship cryptocurrency, experienced a sharp 3.5% decline that pushed its price to test the psychologically important $70,000 level—a low not witnessed since November 2024. While the asset managed a modest recovery to $71,340, the damage to market sentiment was already evident and raised serious questions about the durability of the previous bull market.
The broader market rout claimed victims across the board. XRP suffered one of its most severe daily losses this year, plummeting over 7% to trade below $1.40. Ethereum, the second-largest cryptocurrency by market capitalization, slid to $2,068, marking its lowest valuation since May 2025. Meanwhile, the popular meme coin Dogecoin found itself battling to maintain support at the $0.10 threshold. The cascade of selling triggered widespread liquidations, with approximately $775 million in leveraged positions being forcibly closed across major derivatives exchanges.
This comprehensive analysis examines the key cryptocurrency pairs—XRP/USDT, BTC/USD, ETH/USDT, and DOGE/USDT—to address the pressing question on every trader's mind: why is crypto going down today, and where might it find a bottom?
## Bitcoin's Technical Breakdown and Downside Targets
Bitcoin's price action has turned increasingly bearish, with the cryptocurrency registering its third consecutive day of losses. The 3.5% drop to $70,052 represents a decisive breach below the critical $74,000 support level that had been in focus since November 2024. This breakdown validates the more pessimistic scenarios that technical analysts had been monitoring alongside their base-case projections, demonstrating the importance of preparing for multiple outcomes in volatile markets.
From a technical perspective, the next significant support zone lies at $68,000, where the 200-week exponential moving average (200 WMA) provides a historically important demand area. This level now represents the immediate downside target for Bitcoin and is likely to attract significant buying interest from long-term investors. However, the strength of the current downtrend suggests that even this support may be vulnerable.
Should buying interest fail to materialize at this juncture, the path would open toward a more dramatic decline. The ultra-bearish scenario projects a potential drop to approximately $52,000, which corresponds to the 100% Fibonacci extension of the current downtrend measured from the October peak. This target, while extreme, cannot be dismissed given the accelerating selling pressure and the breakdown of multiple support levels. Bitcoin now trades roughly 45% below its October peak near $126,000, shattering the prevailing consensus that the cryptocurrency would never again fall below the six-figure mark.
Joel Kruger, a respected crypto strategist at LMAX Group, offers valuable perspective on the brutal selloff while identifying potential signs of exhaustion. "Price action across crypto has been undeniably heavy over the past 24 hours, with bitcoin acting as the primary drag on broader sentiment and ETH following suit," Kruger notes. However, he cautions that emerging signs of exhaustion are beginning to appear, suggesting the possibility of a near-term stabilization—though not necessarily a reversal. This observation aligns with the principle that the strongest downtrends often end with a final capitulation event.
## XRP's Severe Correction and Critical Levels
XRP's performance on February 5 was particularly alarming, with the token shedding over 7% of its value in a single session. The decline pushed prices below the $1.40 mark, representing the lowest level since November 2024 if we exclude the anomalous flash crash that occurred in October. This magnitude of loss indicates severe weakness in the token's market structure and suggests that buyers have largely retreated from the market.
The technical outlook for XRP has deteriorated significantly following the break below local support defined by the April 2025 lows. This breach opens the door for a move toward the $1.25-$1.26 range, which coincides with the minimums reached during the October flash crash. Such a decline would represent an additional 10-11% drop from current levels and would likely occur rapidly if selling momentum continues.
In a more severe scenario, if the $1.25 support fails to hold, the next major downside target emerges at just $0.53 on the XRP chart. This would represent a catastrophic 62% decline from present valuations and would likely coincide with a complete breakdown in market structure, potentially leading to a retest of levels not seen since the previous crypto winter.
For the bearish thesis to be invalidated, XRP would need to mount a decisive recovery back above $2.20, where the 200-day exponential moving average currently resides. However, such a scenario appears distant given the current momentum and market conditions, requiring not only a reversal in XRP but also a broader recovery in cryptocurrency sentiment.
## Ethereum and Dogecoin Join the Broad-Based Decline
Ethereum's slide to $2,068 marks its weakest position in eight months, with the cryptocurrency following Bitcoin's lead lower. The break below key support levels suggests further downside may be in store, though specific targets were not detailed in the immediate analysis. Ethereum's correlation with Bitcoin remains high, meaning that ETH is unlikely to find sustainable buying interest until BTC stabilizes.
Dogecoin, meanwhile, is engaged in a critical battle at the $0.10 support level, which represents the lowest price point since September 2024. The meme coin had already broken its important support just below $0.12 at the end of January, and the current consolidation at medium-term lows appears vulnerable to another leg down. The psychological importance of round numbers in cryptocurrency trading cannot be overstated, and the $0.10 level for DOGE represents a critical make-or-break point for short-term traders and long-term holders alike.
The performance of these altcoins demonstrates the market-wide nature of the current selloff, with few tokens managing to escape the broad-based selling pressure. This uniformity suggests that macro factors and overall risk-off sentiment are driving the market rather than token-specific issues.
## Market-Wide Liquidations and Sentiment Analysis
The $775 million in leveraged liquidations underscores the severity of the current downturn and highlights the risks inherent in using margin in volatile markets. Forced selling from margin calls creates a cascading effect, where falling prices trigger more liquidations, which in turn push prices lower. This reflexive dynamic has been a hallmark of crypto bear markets and appears to be actively driving the current selloff, creating a feedback loop that is difficult to interrupt.
The persistent pressure on cryptocurrencies reflects a broader shift in market sentiment that has been building for weeks. The conviction that Bitcoin would maintain five-figure valuations indefinitely has been thoroughly tested, and the breakdown below $70,000 has shattered confidence among retail and institutional participants. This psychological damage may take considerable time to repair, even if prices stabilize in the near term.
## What Would Change the Bearish Narrative?
For Bitcoin to shift from its current bearish trajectory, it would need to reclaim the $74,000 level and subsequently challenge the $78,000-$80,000 resistance zone. More importantly, a sustained move back above the 200-day moving average, currently near $85,000, would be required to signal a potential trend reversal rather than a mere bear market rally.
For XRP, as mentioned, a recovery above $2.20 would be necessary to negate the bearish outlook. For Dogecoin, holding $0.10 and subsequently reclaiming $0.12 would be the first steps toward repairing the technical damage. Ethereum would need to break back above $2,400 to suggest that buyers have returned in force.
## Conclusion: Navigating the Crypto Winter
The cryptocurrency market finds itself in the grip of a powerful downtrend that shows few signs of abating. With Bitcoin testing multi-month lows, XRP experiencing severe corrections, and altcoins like Ethereum and Dogecoin following suit, the burden of proof has shifted to the bulls to demonstrate that a bottom is forming.
The $68,000 level for Bitcoin represents the next critical test, while $1.25 for XRP and $0.10 for Dogecoin will determine whether these assets can avoid more catastrophic declines. Until clear signs of capitulation emerge or fundamental catalysts materialize, a defensive posture remains warranted for crypto market participants. The coming sessions will be crucial in determining whether this represents a temporary correction or the beginning of a more prolonged bear market.