Analysis: Bitcoin retreated after reaching $70,000, derivatives funding surged, but bearish sentiment remains.

Odaily Planet Daily reports that Bitcoin surged above $70,000 during the U.S. trading session on Wednesday but pulled back. On Thursday during Asian hours, it was around $68,600, failing to hold above the key psychological level. Since the end of February, BTC has mostly traded within a range, briefly dropping to $62,500 this month and reaching a high of $71,100 on February 15. Market analysts note that in January, Bitcoin broke out of a similar consolidation zone 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 current 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, 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 position, with open interest exceeding $1.4 billion, suggesting market caution about downside risks. (Coindesk)