Tuesday 24 February 2026
Bitcoin Retreats After $70,000 Rejection as Trade Tensions and Positioning Reset Drive Decline (16–23 February 2026)
Bitcoin declined sharply between 16 February and 23 February 2026, reversing an early attempt to reclaim the $70,000 level before accelerating lower at the start of the new trading week. The move reflected a combination of structural breakout failure and renewed macro pressure after President Donald Trump raised the global tariff rate from 10% to 15%, reigniting trade-war concerns.
Based on the H1 chart, BTCUSD opened on 16 February at
$68,833.09 and closed on 23 February at
$64,581.37, marking a decline of approximately
6.2% across the period. The intraperiod low reached
$63,869.67, representing a drawdown of roughly
7.2% from the week’s peak at
$70,108.19.
The sequence unfolded in stages — first a failed breakout, then gradual erosion of support, and finally a macro-accelerated downside expansion.
Breakout Failure at $70,000 Marked the Structural Turning Point
The initial inflection occurred on 17 February, when Bitcoin rallied to
$70,108.19 before reversing sharply to
$66,602.27 within the same session.
The $70,000 level carried psychological and structural importance. Major round numbers often act as conviction tests. When breakouts above such levels fail to hold, upside momentum weakens rapidly as short-term traders reduce exposure.
The rejection suggested demand was insufficient to sustain continuation. Importantly, this reversal occurred before the major tariff headlines — indicating that structural vulnerability was already present.
From that point onward, price behavior shifted from expansion to cautious repricing.
Gradual Weakness Reflected Position Reduction
Following the failed breakout, Bitcoin printed progressively lower intraday lows:
- $65,850.87 on 18 February
- $65,613.33 on 19 February
- $66,409.91 on 20 February
The decline was orderly rather than disorderly. There was no immediate panic selling. Instead, rebounds lacked follow-through, and upside attempts stalled more quickly each session.
This type of price structure is typically associated with gradual position trimming rather than forced liquidation. Liquidity-sensitive assets such as Bitcoin often weaken in this manner when conviction fades but systemic stress is absent.
By late week, the market was technically fragile — even before macro headlines intensified.
Tariff Escalation Shifted the Macro Backdrop
Over the weekend, the macro environment changed materially.
President Trump announced that the temporary global tariff rate would be increased from 10% to 15%, following a Supreme Court ruling related to aspects of his emergency tariff program. The policy shift renewed trade-war uncertainty across global markets.
Bitcoin reacted immediately in 24/7 trading, dipping sharply before briefly stabilizing. As broader markets prepared to reopen, the cryptocurrency moved lower alongside other risk-sensitive assets.
Trade escalation typically triggers:
- Risk-off positioning
- Strength in defensive assets
- Pressure on growth and liquidity-sensitive instruments
Bitcoin, which has increasingly behaved as a macro-sensitive asset during policy shocks, reflected that shift.
The tariff development did not cause the initial $70,000 rejection — but it materially altered the risk environment going into Monday.
Monday Acceleration Confirmed Risk-Off Expansion
The decisive move occurred on 23 February.
Bitcoin fell sharply to
$63,869.67 before closing at
$64,581.37, marking the largest directional expansion of the period.
The speed and magnitude of the decline suggest a positioning unwind once support levels failed in a macro-risk environment. Weekend volatility had already reflected tariff-related sensitivity. When traditional markets reopened under renewed trade uncertainty, Bitcoin extended losses in tandem with broader risk repricing.
The move was consistent with:
- Technical vulnerability from the earlier failed breakout
- Reduced upside positioning midweek
- A macro shock that accelerated existing weakness
The final leg lower therefore appears less like an isolated crypto event and more like a macro-correlated risk adjustment.
Takeaway
Over the course of the week, Bitcoin’s decline unfolded less like a sudden shock and more like a narrative gradually turning against itself. The attempt to reclaim $70,000 initially suggested renewed bullish momentum, but the failure to hold above that level exposed underlying fragility. As the days progressed, each rebound grew weaker, and confidence slowly faded. What began as a stalled breakout evolved into a steady loss of conviction.
By the time global trade tensions intensified with the announcement of higher tariffs, the market was already vulnerable. The macro backdrop did not create the weakness — it amplified it. When support finally gave way, the decline accelerated, reflecting how quickly liquidity-sensitive assets can respond when structural exhaustion meets external uncertainty.
In the end, the move was not driven by a single headline, but by the convergence of fading momentum and a deteriorating risk environment — a reminder that in Bitcoin, technical structure and macro developments often move together.
The chart below presents
BTCUSD’s price movement between
16 and 23 February on the
1-hour candlestick timeframe, highlighting the shift in momentum over the period.
Pre-Meeting War Premium Build-Up
Escalation Deferred, Diplomacy Preserved
Geneva Talks — Tangible Diplomatic Progress
