The crypto market quickly rebounded this morning, but funding rates indicate the market remains bearish. Data reveals that "high-position trapped traders" are still forced to hold their coins.

On February 25, according to CEX market data, Bitcoin surged rapidly this morning, rising 3% within 15 minutes and breaking above $66,000; Ethereum also rebounded past $1,900; SOL recovered above $80. According to Coinglass data, in the past four hours, the entire network experienced $129 million in liquidations, with only $4.73 million in long liquidations and $125 million in short liquidations. Although the market has recovered and the fees for Bitcoin and Ethereum have returned to positive territory (still somewhat bearish), the current mainstream CEX and DEX funding rates indicate the market remains bearish, as most altcoins are still in negative funding rates. A service for institutional clients, CEX Institutional, released a report earlier today stating that Bitcoin’s support level is at $60,000, with dense resistance above at $82,000. Due to negative gamma concentrated in the $60,000–$70,000 range and positive gamma above $85,000 and $90,000, if Bitcoin rises to $90,000, it may enter consolidation, while a drop to $60,000 could accelerate downward movement. Independent market analyst Axel said, “Bitcoin’s realized market value net position change” and “Bitcoin HODL Waves” indicate that current market supply is decreasing, but capital has not yet flowed back in. The largest holder group consists of addresses bought near the peak that are currently at a loss, with trapped coins forced to become “steadfast holders,” while new capital inflow is lacking. As long as these two conditions persist, the market remains in a defensive mode. According to Polymarket data, the probability of Bitcoin reaching $68,000 between February 23 and March 1 has increased to 65%.