Analyst: Bitcoin bears are overly crowded; a rebound and short squeeze may occur before the Easter holiday.

CoinDesk News: Bitcoin dips below $66,000, with a 24-hour drop of 3.7%. In recent weeks, it has been trading sideways in the $60,000 to $70,000 range. Glassnode says that spot demand has started to absorb sell-off pressure, but it is still not enough to drive a sustained uptrend. About 8 million to 9 million BTC positions have a cost basis higher than the current price, forming resistance that suppresses rebounds. At the same time, long-term holders are realizing losses at higher levels, and the coin redistribution phase has not yet ended.

In the derivatives market, the funding rate has stayed negative for most of the time, meaning traders pay a premium to hold short positions. If the concentrated short setup encounters momentum, it could trigger a squeeze. In the options market, implied volatility is contracting, indicating that investors prefer hedging risk rather than betting on a breakout.

On the macro front, Bitunix analysts point out that the market has entered the supply-chain disruption phase, and disruptions to energy and industrial metals production are starting to transmit into inflation. Liquidity above Bitcoin is concentrated between $69,000 and $70,100, while a key test level below is around $65,500. K33 says traders are entering the Easter holiday window with an aggressive-yet-cautious posture.

Pantera Capital founder Dan Morehead says Bitcoin may take six to eight months to bottom, but it has already reached “escape velocity.” Institutional participation is still close to zero, and the next leg higher will be driven by broader adoption.