Bitcoin Drops Below $66K Amid Short Squeeze Risk

Bitcoin's price has fallen below the $66,000 mark, continuing its recent range-bound trading between $60,000 and $70,000. Analysts suggest that while spot demand is absorbing some selling pressure, it's not yet sufficient to drive a significant upward trend. The current market setup indicates a period of transition, with a substantial amount of Bitcoin supply still held at a loss. This positioning, coupled with defensive derivatives strategies showing a preference for short exposure, raises the potential for a short squeeze, especially with the upcoming Easter holiday potentially influencing market activity.