Bitcoin Trades Near $68,000 on February 21, 2026, Amid Market Consolidation and Mixed Sentiment

Bitcoin hovered around $68,000 on Saturday, February 21, 2026, showing modest gains in early trading as the cryptocurrency attempted to stabilize after a volatile start to the year that saw it log its weakest first 50 days on record.

The leading digital asset traded at approximately $68,100 to $68,200 in the latest 24-hour period, according to aggregated data from major exchanges and trackers like Yahoo Finance, CoinMarketCap and Investing.com. It opened the day near $67,996, reached a high of about $68,212 and dipped to a low of $67,596 before settling in the mid-$68,000 range. This represented a slight uptick of roughly 0.3% to 1% from the previous close, with trading volume moderate at around $43-47 billion over the prior day.

The price action comes as Bitcoin continues to consolidate in a symmetrical triangle pattern, with key resistance near $68,500 and support around $65,500 to $66,000. A breakout above the upper boundary could signal renewed bullish momentum, while a drop below support might trigger further downside toward $60,000 or lower, analysts warn.

The cryptocurrency has faced significant headwinds in 2026 so far. Through the first 50 days of the year, Bitcoin declined about 23%, marking its poorest start to a calendar year ever recorded, per Checkonchain data. January saw a roughly 10% drop, followed by an additional 15% slide in February — a rare back-to-back monthly decline for the asset. From its October 2025 all-time high near $126,000, Bitcoin has shed nearly 50%, reflecting broader market deleveraging and waning confidence in high-risk assets.

Several factors contributed to the weakness. Institutional outflows from U.S. spot Bitcoin ETFs totaled billions in recent weeks, with heavy net redemptions pressuring prices. On-chain metrics from Santiment showed small retail wallets increasing holdings by 2.5% since the October peak, while large “whale” holders trimmed positions by 0.8%. This divergence suggests retail buyers stepping in amid fear, but a sustained rally may require bigger players to re-engage.

Extreme sentiment readings added to the caution. The Fear & Greed Index hit single-digit levels around 8 in mid-February, signaling “extreme fear” among participants. Retail traders remained heavily long at 66.8%, creating a contrarian bearish signal. Leverage in the futures market rose, heightening risks of liquidations if volatility spikes.

Geopolitical tensions, macroeconomic uncertainty and a loss of momentum in related narratives like AI-driven growth also weighed on sentiment. Bitwise CIO Matt Hougan noted in a recent podcast that the February 5 drop to the mid-$60,000s was “shocking” but not necessarily the “final cathartic bottom,” suggesting more shakeouts ahead before a recovery.

Despite the challenges, some positive undercurrents emerged. Institutional accumulation persisted in certain metrics, with coins moving off exchanges — a sign of long-term holding. Bitcoin Cash, a fork of Bitcoin, set transaction volume records in February amid the broader fear, highlighting niche resilience in the ecosystem.

Prediction markets reflected uncertainty. On platforms like Polymarket and Kalshi, contracts for Bitcoin’s price on February 21 clustered around $66,000-$68,000 ranges, with probabilities favoring consolidation in that band. Broader forecasts for the quarter pointed to potential recovery toward $70,000-$79,000 by end-Q1, though downside risks to $56,000 lingered if support breaks.

Market observers remain divided. Some see the current dip as a healthy correction in a longer bull cycle, driven by orderly deleveraging rather than capitulation. Others warn of structural weaknesses, including high leverage and weak institutional inflows, that could prolong the downturn.

Bitcoin’s market capitalization stood around $1.35 trillion to $1.36 trillion, maintaining its dominance in the crypto space. The asset’s volatility persisted, with daily swings underscoring the need for caution among traders and investors.

As February progresses, all eyes remain on key levels, ETF flows and macroeconomic developments. Whether Bitcoin can reclaim higher ground or faces further tests will likely depend on renewed buying interest from institutions and a shift in broader risk sentiment.

For now, the cryptocurrency trades in a tight range, offering little clarity on its next major move in what has been a challenging 2026 so far.