Crypto Focus - February 21, 2026 (Morning)

 ## Crypto Market Overview Overnight, the cryptocurrency market exhibited a **risk-on** sentiment, driven by a resurgence in investor enthusiasm following recent regulatory developments. Total market capitalization rose approximately 3%, moving back above $1 trillion, suggesting renewed interest from both retail and institutional investors. **Bitcoin** dominance remains steady around 45%, indicating a slight preference for the leading cryptocurrency amidst a broader market recovery. Key narratives include increasing institutional interest, particularly in Bitcoin ETFs, and ongoing regulatory discussions that promise to clarify the operational landscape for cryptocurrencies. Investor sentiment has been bolstered by optimism surrounding potential Bitcoin ETF approvals, which are expected to provide a significant influx of capital into the crypto space. Additionally, reports of increased small investor participation have sparked discussions about a more sustainable market rally, although analysts caution that for a significant upswing, larger whale participation will be essential. Overall, the market is cautiously optimistic, with many eyes on upcoming regulatory decisions. ## Bitcoin Analysis **$BTC** has shown a robust overnight performance, trading up about 4% to around $36,500. The cryptocurrency tested key resistance levels near $37,000 but faced some selling pressure that kept it from breaking through decisively. On-chain metrics indicate heightened whale activity, with several large transactions occurring that may suggest accumulation rather than distribution. Exchange flows have turned slightly positive, indicating that more users are moving their Bitcoin away from exchanges, which is often interpreted as a bullish signal. Key support levels for **$BTC** are now seen around $35,000, with resistance expected at $37,500. If the price can hold above this support, we may see a test of higher levels in the coming days, especially if ETF discussions progress favorably. ## Ethereum & Layer 1s **$ETH** has mirrored Bitcoin's gains, rising approximately 3% to around $2,200. There have been no significant network disruptions or updates impacting Ethereum today, but the ecosystem remains buoyed by the broader market sentiment. In the Solana ecosystem, **$SOL** has also seen a price increase of about 5%, with reports of increased activity in decentralized applications (dApps) following updates to its underlying technology that improve scalability. Other major Layer 1s like **$ADA** and **$AVAX** have remained stable, but no notable news has emerged to drive substantial price movements. ## Altcoin Watch In the altcoin space, **$XRP** has gained attention with rumors of a potential favorable ruling in its ongoing SEC case, prompting a price increase of about 6%. Meanwhile, meme coins like **$DOGE** and **$SHIB** have seen modest trading volumes, but no significant news has emerged to warrant notable activity. In the DeFi sector, **$LINK** and **$UNI** have seen slight upticks in price as decentralized finance protocols continue to attract new liquidity. However, without substantial new developments or partnerships, these tokens are trading sideways. ## Crypto Trading Game Plan - Watch for **$BTC** to hold above $35,000; failure to do so may signal a pullback. - Keep an eye on **$ETH** and **$SOL** as they follow Bitcoin's lead; potential breakout points are key. - Monitor news around potential Bitcoin ETF approvals as this could create volatility. - Be cautious of profit-taking; the current rally might attract sellers looking to capitalize on recent gains. - Whale activity should be closely observed; substantial movements can influence market direction significantly.