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Bitcoin Drops Below $75,000: Is This Time to Buy the Dip? | ETF & Derivatives Daily

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin's price has dipped below $75,000, signaling a potential bearish trend, with a 7% daily drop and increased selling pressure.
  • Futures open interest (OI) is declining, suggesting traders are closing positions, reflecting reduced market participation.
  • Despite negative price movement, Bitcoin's positive funding rate indicates bullish sentiment remains strong among long-term holders.
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The leading coin, Bitcoin, has slipped below the $75,000 mark. As of writing, it is trading at around $74,800, the levels last seen during November 2024.

The asset is down 7% on the day, while trading volume has surged over 200%, signaling intense selling pressure. With a strengthening bearish bias, the leading crypto might be set on recording new lows in the near term. 

Bitcoin Futures Show Traders Pulling Out, But Bulls Aren’t Letting Go

This bearish wave in BTC’s market is reflected in the coin’s falling futures open interest (OI), which points to traders closing positions and exiting the market. At press time, this stands at $51.88 billion, plummeting 1% over the past 24 hours. 

Bitcoin Open Interest.
Bitcoin Open Interest. Source: Coinglass

BTC’s futures OI measures the total number of active futures contracts that have not been settled or closed. When it falls like this, it usually indicates that traders are closing out positions—either taking profits or cutting losses—rather than opening new ones. 

This decline signals reduced market participation and waning confidence in the possibility of any short-term price rebound.

However, despite the sharp decline, market sentiment remains surprisingly resilient. BTC’s steady positive funding rate, currently at 0.0060%, reflects this.

Bitcoin Funding Rate.
Bitcoin Funding Rate. Source: Coinglass

The funding rate is a periodic payment between long and short traders in perpetual futures contracts designed to keep prices in line with the spot market. A positive funding rate means traders holding long positions are paying those with shorts, indicating that more traders are betting on prices going up. 

This trend reflects the dominance of bullish sentiment among many BTC holders in the market, even as the coin’s prices are temporarily falling.

Options Traders Brace for More Downside

Data from the options market confirms the spike in selling pressure among traders. According to Deribit, there are currently more open put contracts than calls. This is a clear sign that investor confidence in a short-term Bitcoin rebound continues to fade.

Bitcoin Options Market Data
Bitcoin Options Market Data. Source: Deribit

It can be said that this mix of signals—bullish funding rates, bearish options positioning, and falling OI— points to one thing. It highlights a market in conflict, where sentiment is split and uncertainty reigns. Hence, caution is advised.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a Technical and On-Chain Analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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