Bitcoin's price has resumed a sharp downward spiral, dropping over 3% on February 11, 2026, to test the critical $66,000 support level. This 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 asset is now trading below its 200-week exponential moving average, a key long-term technical indicator.
The decline has been fueled by a combination of hawkish signals from the Federal Reserve and a lack of supportive government intervention. Treasury Secretary Scott Bessent's recent confirmation that the administration has no immediate plans to establish a strategic Bitcoin reserve acted as a primary catalyst for the current sell-off. This has triggered a wave of 'institutional de-risking' across both spot and derivatives markets.
Technically, Bitcoin failed to hold above $70,000 and broke below the $68,800 and $68,000 support zones. It is now trading below $68,000 and the 100-hour simple moving average. A bearish trend line is forming with resistance near $68,200 on the hourly chart. Market data from CoinGlass shows that nearly $770 million in leveraged long positions have been liquidated over the past 48 hours, accelerating the downward momentum.
The macro outlook has worsened with the nomination of Kevin Warsh to lead the Federal Reserve, a move interpreted as cementing a 'higher-for-longer' interest rate environment. This increases the opportunity cost of holding non-yielding assets like Bitcoin. Analysts warn the decline could trigger a 'death spiral' if major corporate holders like MicroStrategy, whose average purchase price is now above market value, are forced to sell.
Some analysts, like those from K33, suggest the plunge toward $60,000 may be showing 'capitulation-like' conditions, with the daily RSI hitting an extremely oversold reading of 15.9. However, the broader trend remains bearish. The immediate major support is at $65,000, followed by $63,500 and $62,000. A failure to reclaim the $68,000-$69,000 resistance zone could see Bitcoin target the $60,000 support area, with some Fibonacci extensions pointing to a potential drop as low as $52,000.
