Bitcoin’s Powerful Rally Signal Is Back — Is History About To Repeat?

Markets blinked hard this week. According to Checkonchain, a measure tied to recent Bitcoin buyers has dropped into extreme territory not seen since the late 2018 slump.

That metric compares where new buyers paid against price swings, and right now those who bought inside the last 155 days sit well below break-even on average. That creates stress. It can also mark a low if other pieces line up.

Reports say the Short-Term Holder Bollinger Band reading has pierced its lower band, a statistical cue that recent buyers are unusually underwater.

In past cycles that kind of print arrived near major lows — a deep wash-out when selling activity peaked and then buying began to reclaim value.

Realized losses among large short-term wallets have not exploded yet, which, based on reports from MatrixPort, hints that heavy hitters may be holding through the pullback rather than throwing in the towel.

Reports note that a similar signal appeared before Bitcoin’s historic 1,900% rally from the late 2018 bottom to 2021. While past performance does not guarantee the same outcome, the comparison highlights how extreme stress among short-term holders has previously aligned with major long-term gains.

Today’s #Matrixport Daily Chart – February 17, 2026

Bitcoin Sentiment Hits Extreme Lows ⁰— Durable Bottom Are Emerging?

#Matrixport #Bitcoin #BTC #CryptoMarkets #MarketSentiment #FearAndGreed #RiskManagement #Volatility #CryptoResearch pic.twitter.com/WxJg3xrHSf

— Matrixport Official (@Matrixport_EN) February 17, 2026

Price behavior has been messy. Bitcoin slipped under $67,000–$70,000 as risk-off flows hit markets. Traders point to rising geopolitical tensions in the Middle East and the broader pull in risk assets as key drivers of the move.

Reports say a note picked up by a popular media and TV firm relayed a Wells Fargo view that a seasonal surge in US tax refunds — the bank’s strategist described a sizable liquidity window — could re-route fresh cash toward risk bets, possibly supporting a rebound by the end of March.

Bitcoin STH Bollingers most oversold in 8 years pic.twitter.com/tHyBv3V1Ge

— Quinten | 048.eth (@QuintenFrancois) February 17, 2026

Looking back offers both comfort and caution. The oversold alarm flashed before a big rally after 2018, and a similar signal showed up ahead of the November 2022 trough that later produced a steep recovery.

Reports note those moves unfolded against very different backdrops — money supply conditions, interest rates, and institutional involvement were not the same then as they are now.

This time there are ETFs, more derivatives, and a tighter policy regime in some parts of the world. Past wins do not automatically repeat, but patterns can still guide risk-aware decisions.

Short-term pain may still come. Volatility can remain high while markets reconcile macro news and geopolitical shocks. Yet the stretched readings among recent buyers do improve the odds that a better buying window is near for anyone with a multi-year horizon.

Featured image from Unsplash, chart from TradingView