Bitcoin’s $66,000 Crisis: 5-Week Losing Streak Sparks “Death Spiral” Fears! Is Michael Burry Right?
Thursday, February 19, 2026. The ongoing “Great Bitcoin Correction” is getting worse. For the first time since the tough 2022...
Quick overview
- Bitcoin is experiencing its fifth consecutive week of losses, struggling to maintain the $66,000 support level.
- The recent release of the Federal Reserve's meeting minutes has strengthened the U.S. Dollar, negatively impacting Bitcoin and related stocks.
- Investor Michael Burry warns of a potential 'death spiral' for Bitcoin if it falls another 10%, which could force corporate holders to sell.
- The Crypto Fear and Greed Index has hit a record low, indicating extreme fear in the market and caution among traders.
Thursday, February 19, 2026. The ongoing “Great Bitcoin Correction” is getting worse. For the first time since the tough 2022 bear market, Bitcoin (BTC) is facing its fifth straight week of losses.
A normal pullback from the $126,000 highs of late 2025 has now become a struggle to hold the $66,000 level. Recent signals from the Federal Reserve have strengthened the U.S. Dollar, and Michael Burry, known for “The Big Short,” has issued a warning that is making corporate crypto holders nervous.
The $66K Line in the Sand: Technical Breakdown
Bitcoin’s price has dropped. After briefly reaching $68,500 overnight, it fell by 2.5% on Wednesday and ended the U.S. session just below $66,000.
Traders are now closely watching the $60,000 to $62,000 support zone. This area helped start the rally to $70,000 earlier this year, but since January 19, the Supertrend indicator has shown a negative trend, and momentum favors the sellers.
- Critical Resistance: $70,000 (The “Wall”)
- Next Stop: $60,000 (The “Yearly Pivot”)
- Worst-Case Scenario: A drop toward the 200-week moving average at $58,000.
Fed Minutes Spark a Dollar “Rampage”
The primary catalyst for Wednesday’s bloodletting was the release of the January FOMC meeting minutes. While markets were hoping for a dovish pivot, they got a “two-sided” warning instead.
“Several policymakers discussed adopting guidance that could leave the door open for further hikes if inflation remains sticky,” the minutes revealed.
This decision pushed the U.S. Dollar Index (DXY) to a two-week high and reduced liquidity in riskier assets. As the dollar increased, BTC dropped, and crypto-related stocks like Coinbase (COIN) and Strategy Inc. (formerly MicroStrategy) lost 3 to 5% of their value in one afternoon.
Weak hands sell the fear; strong hands buy the future. Back’s latest comments serve as a psychological anchor for a market currently drowning in FUD."
With BTC near $67k, the 'Stronger Hands' are currently accumulating while the 'Weak Hands' are forced out by leverage. https://t.co/2DuSemckF1— Jeongmin (@nice_investment) February 19, 2026
Michael Burry’s “Death Spiral” Warning
Well-known contrarian investor Michael Burry is not just pessimistic; he is warning of bigger risks. In recent posts, Burry said that because Bitcoin did not rise with gold and silver, which recently reached record highs, it shows Bitcoin is a speculative asset rather than a hedge against currency debasement.
Burry warns of a “death spiral” scenario:
- The Threshold: If BTC falls another 10% from current levels, major corporate treasuries will be billions in the red.
- Forced Selling: Risk managers at the ~200 public companies holding BTC may be forced to sell to protect balance sheets.
- Liquidity Black Hole: This could close capital markets for crypto companies and force Bitcoin miners, who are already dealing with high energy costs, into bankruptcy.
Extreme Fear: Sentiment Hits Record Low
The data shows a sharp drop in confidence. Last week, the Crypto Fear and Greed Index fell to 5, its lowest level ever.
In the past, such low readings have signaled “capitulation,” which can come before a major rebound. However, with Michael Burry saying that “the only winning move is not to play,” even experienced buyers are holding back.
The Analyst’s Verdict: A Market at a Crossroads
For professional traders, this is not the time for risky bets. The difference in performance between Bitcoin and precious metals suggests that the idea of Bitcoin as “digital gold” is under pressure. Unless BTC moves back above the 50-day EMA near $80,000, it is likely to keep falling.
Pay attention to the $60,000 level. If it stays above this point, a “W-bottom” pattern could form. If it falls below, the negative outcomes Burry warned about may happen.
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