Bitcoin Dips Below $75K as Market Shows Mixed Signals

Futures statistics also indicate a bearish tendency, with the open interest (OI) of Bitcoin falling to $51.88 billion, down by 1% within one day alone. This is indicative of the fact that traders are closing existing positions instead of initiating new ones, which generally points towards caution over incurring more losses.

But not all the indicators are bearish. Bitcoin’s funding rate is still positive at 0.0060%, which indicates that most traders are still wagering on prices going up again.

The funding rate tracks payments between long and short traders in futures contracts. A positive rate means more traders are betting on an upward move.

However, options market data shows growing caution. Deribit reports more open put contracts than calls. This indicates more traders are preparing for a continued price drop.

In short, the market is sending mixed signals. While some traders still anticipate a recovery, others are clearly bracing for more downturn. With opinion divided, analysts advise restraint before doing anything aggressive.