Analysis: Bitcoin rises to $70,000 then pulls back, derivatives funds flow in but bearish sentiment remains

ChainCatcher News: Bitcoin surged to around $71,000 during the U.S. trading session on Wednesday before pulling back. On Thursday during Asian hours, it was around $68,600, failing to hold above a key round number. Since the end of February, BTC has mostly traded within a range, having dipped to $62,500 earlier this month and reaching a high of $71,100 on February 15.

Market analysts note that in January, Bitcoin briefly broke above a similar trading range but then quickly fell from $98,000 to $60,000. During this downward cycle, it formed lower highs, causing some traders to remain cautious about the sustainability of recent breakouts. Derivatives data shows that open interest (OI) in crypto futures has increased by over 6.6%, approaching $100 billion, outpacing overall market cap growth and indicating new capital inflows.

In the options market, Deribit data shows that Bitcoin's rebound has increased demand for call options with strike prices between $85,000 and $90,000. However, the overall options structure remains skewed toward downside protection, with $60,000 put options being the most popular, with open interest exceeding $1.4 billion, suggesting market participants still harbor some downside risk concerns.