Analysis: Bitcoin retraced after reaching 70,000 USD, with derivative funds pouring in but bearish sentiment remaining

Bitcoin fell back after a strong rise to $70,000 during the U.S. trading session on Wednesday, reporting around $68,600 during the Asian session on Thursday, failing to effectively hold the key integer level. Since the end of February, BTC has maintained a range-bound structure, having dipped to $62,500 earlier this month and reaching $71,100 on February 15.

Market participants noted that Bitcoin had previously broken through a similar range in January, but then quickly fell from $98,000 to $60,000, forming lower highs during this downward cycle, which has made some traders cautious about the sustainability of the current breakout. Derivatives data shows that the total open interest (OI) in cryptocurrency futures has increased by over 6.6%, approaching $100 billion, with a growth rate higher than the overall market cap increase, indicating new capital inflow.

In the options market, Deribit data shows that the Bitcoin rebound has driven an increase in demand for call options with strike prices between $85,000 and $90,000. However, the overall options structure still leans towards bearish protection, with $60,000 put options being the current most popular position, having a nominal open interest exceeding $1.4 billion, indicating that the market still retains concerns about downside risks.