Bitcoin remained depressed on Tuesday despite a brief bounce from a 10-month low, with options market activity showing investors still wary of the risk of further downside.
Bitcoin trading was mostly flat below $78,500, after nearing its lowest level since President Donald Trump returned to the White House, reflecting the market's still fragile sentiment.
Options data showed that $75,000 remained a key support with further support estimated at around US$70,000.
Derivatives markets also gave a negative signal as the Bitcoin futures contract funding rate turned negative. This indirectly reflected the dominance of short positions and the increasing level of pessimism among market players.
Although Bitcoin managed to surge in early Asian trading, volatility remained high, indicating that the market is still unstable and sensitive to short-term price movements.
