Bitcoin's price has experienced a significant drop, trading at $64,888, a decrease of 2.38% from its intra-day high. This decline is attributed to a massive sell-off, resulting in the liquidation of over 40 million long positions. The market's anxiety has intensified, with Bitcoin facing resistance and struggling to maintain its upward momentum.

The sell-off is due to persistent resistance experienced by Bitcoin, despite its attempts to consolidate above the $66,000 mark. Technical indicators, such as the TD Sequential, have flashed warning signals, suggesting a potential change in Bitcoin's price trajectory.

Bitcoin's funding rate has turned negative for the first time this year, just before the recent halving event. This negative funding rate indicates a bearish market sentiment, with short positions outweighing long positions. This occurrence reflects the impact of the halving event on Bitcoin's network dynamics and investor psychology.

Despite the current downswing, there are indicators that the market is looking upward again. After two days of negative funding rates, Bitcoin has experienced a bounce in its funding rate following the halving event. Aggregate open interest has surged, suggesting a rise in bullish sentiment among market players.

The rebound of the BTC Long/Short Ratio confirms the optimistic bias, signaling that investors are now more bullish than bearish on Bitcoin. Recent studies also suggest that the last Bitcoin halving had a more positive impact on the Bitcoin price than the previous halving, indicating a potential prolongation of the bullish trend in the long term.

The upcoming expiry of crypto options, including Bitcoin and Ethereum, adds another layer of volatility to the market. Over $9.4 billion worth of crypto options are set to expire, potentially exacerbating price fluctuations in the short term. The expiration of options contracts typically results in increased trading activity and heightened volatility as investors reposition their holdings.

Arthur Hayes has expressed confidence in Bitcoin's long-term trajectory, emphasizing its role as "the hardest money ever created" and citing ongoing fiat inflation as a catalyst for Bitcoin's continued growth. Hayes predicts a bullish outlook for Bitcoin, urging investors to capitalize on opportunities presented by market dips.