Analysis: Bitcoin Retreats After Testing $70,000; Derivative Funds Flow In, But Bearish Sentiment Persists

Odaily News Bitcoin retreated after a strong push to test the $70,000 level during Wednesday's U.S. trading session. As of Thursday's Asian session, it was trading around $68,600, failing to firmly hold above the key psychological level. Since entering late February, BTC has largely maintained a range-bound structure. Earlier this month, it dipped to $62,500 before touching $71,100 on February 15th. Market observers note that Bitcoin broke out of a similar consolidation range in January this year, but subsequently retreated sharply from $98,000 to around $60,000, forming a lower high during this downward cycle. This has led some traders to remain cautious about the sustainability of the current breakout. Derivatives data shows that the total open interest (OI) for crypto futures has increased by over 6.6%, approaching $100 billion. This growth rate outpaces the overall market cap increase, indicating an influx of new capital. In the options market, data from Deribit shows that Bitcoin's rebound has driven increased demand for call options with strike prices between $85,000 and $90,000. However, the overall options structure still leans towards downside protection. The $60,000 put option remains the most popular position, with a nominal open interest exceeding $1.4 billion, indicating that the market still harbors concerns about downside risks. (Coindesk)