Bitcoin’s price resumed its aggressive downward spiral on February 11, 2026, dropping another three percent to test the critical 66,000-dollar level and officially slipping below its 200-week exponential moving average. This latest leg down marks the third consecutive session of losses, extending a multi-month decline that has now erased all gains made since the 2024 election cycle. The “digital gold” narrative, which propelled the asset to a record high of 126,210 dollars in October 2025, has been systematically dismantled by a combination of hawkish Federal Reserve signals and a total lack of government intervention to support the market. Treasury Secretary Scott Bessent’s recent confirmation that the administration has no immediate plans to establish a strategic Bitcoin reserve has acted as a primary catalyst for the current sell-off, triggering a wave of “institutional de-risking” across both spot and derivatives markets. As the psychological barrier of 70,000 dollars recedes into the rearview mirror, traders are now bracing for a revisit of the 60,000-dollar support zone last seen in late 2024.
The Collapse of Speculative Froth and the Reality of Hawkish Macro Policy
The technical breakdown on Wednesday has been exacerbated by the nomination of Kevin Warsh to lead the Federal Reserve, a move that markets have interpreted as a definitive end to the era of “easy money.” With Warsh expected to maintain a “higher-for-longer” interest rate environment when he takes office in May, the opportunity cost of holding non-yielding digital assets has become increasingly prohibitive. Market data from CoinGlass shows that nearly 770 million dollars in leveraged long positions have been liquidated over the past forty-eight hours, further fueling the downward momentum as stop-loss orders are triggered in rapid succession. Notable investors, including Michael Burry, have warned that this sustained decline could set in motion a “death spiral” as the primary treasury-holding companies—most notably MicroStrategy—find themselves “underwater” on their massive Bitcoin positions. With the average purchase price for these institutional giants now sitting above current market values, the risk of forced selling from the industry’s largest “HODLers” has become a tangible threat to market stability.
Searching for a Durable Bottom Amidst Capitulation and Mining Distress
Despite the prevailing gloom, some research firms like K33 argue that the current plunge toward 60,000 dollars may be exhibiting “capitulation-like” conditions that could precede a local bottom. Momentum indicators have reached their most oversold levels since 2015, with the daily Relative Strength Index (RSI) falling to a rare reading of 15.9. This extreme technical exhaustion is mirrored in the mining sector, where an eleven percent downward difficulty adjustment has failed to offset the shrinking profit margins caused by the price collapse. While these metrics suggest that the “speculative tourists” have been largely flushed out, the path to a meaningful recovery remains obstructed by the absence of a clear bullish catalyst. Until Bitcoin can reclaim and sustain the 68,000-dollar level, the broader trend remains firmly intact, with some analysts targeting a 100% Fibonacci extension that could see the asset drop as low as 52,000 dollars. For the remainder of February, the market’s focus will stay on the “deleveraging” process as the world’s most prominent cryptocurrency struggles to find its footing in a newly restrictive economic landscape.
