Bitcoin’s derivatives-led rally is already unraveling. Prices are back below $75,000

Bitcoin $BTC$74,282.79 has fallen back below $75,000, highlighting the fragility of its early Asian session rally to six-week highs.

Prices rose to $75,912 early Tuesday, the highest since Feb. 4, according to CoinDesk data. 10x Research pointed to activity in the derivatives market as the main driver of that rally. Specifically, closure of large bearish bets tied to $60,000 put options likely powered gains.

Further, as those puts were closed, market makers who had taken the other side of the trade needed to rebalance their exposure. That process can involve buying bitcoin, which likely created flows that pushed $BTC's spot price quickly above $75,000.

But the rally faded just as quickly, suggesting the move was driven more by the removal of downside hedges than by fresh conviction from buyers. According to 10x Research, the early gains weren't accompanied by significant upside call buying, which is usually a sign that traders are positioning for further upside.

The broader market has followed suit, with major tokens such as ether (ETH), $XRP ($XRP), solana (SOL), $BNB $BNB$675.96, DOGE$0.1004 and others receding from their respective Asian session highs. The CoinDesk 20 Index now trades at 2,162 points versus 2,202 early Tuesday.

Resistance holds

$BTC's quick pullback marks a failure to hold gains above $74,400, a former support level from early April last year that is now acting as resistance. That level had previously stalled selling in early April 2025 and paved the way for a fresh rally to record highs above $126,000 by October.

Bitcoin's weekly chart. (TradingView)

The inability to stay above $74,400 suggests traders are watching this level closely, and it may serve as a short-term ceiling for the market.

This behavior highlights how technical reference points from previous market cycles continue to influence trader psychology. Even a brief breach of $75,000 triggered selling pressure, showing that market participants remain cautious about chasing rallies without a clear catalyst.