Bitcoin fell back below $75,000, underscoring the fragility of its early Asian session rally to six-week highs.
Prices hit $75,912 early Tuesday, the highest since February 4, according to CoinDesk data. 10x Research highlighted activity in the derivatives market as the main driver of this rally. Specifically, closing large bearish bets related to $60,000 puts likely generated gains.
Additionally, as these puts were closed out, the market makers who had taken the other side of the trade had to rebalance their exposure. This process may involve purchasing Bitcoin, which likely created flows that quickly pushed the BTC spot price above $75,000.
But the rally faded just as quickly, suggesting the move was driven more by removing downside hedges than renewed buyer conviction. According to 10x Research, early gains were not accompanied by significant upside buying, which is usually a sign that traders are positioning for further upside.
The broader market followed suit, with major tokens such as Ether (ETH), XRP (XRP), Solana (SOL), BNB. , and others moving away from their respective Asian session highs. The CoinDesk 20 Index is now trading at 2,162 points compared to 2,202 early Tuesday.
Resistance holds
BTC’s rapid pullback marks the failure to sustain gains above $74,400, a former support level from early April last year that now acts as resistance. This level had already halted the selling in early April 2025 and paved the way for a further recovery to reach record highs above $126,000 in October.
The inability to stay above $74,400 suggests traders are watching this level closely, and it could serve as a near-term ceiling for the market.
This behavior highlights how technical reference points from previous market cycles continue to influence traders’ psychology. Even a brief breakout of $75,000 triggered selling pressure, showing that market participants remain cautious about continuing rallies without a clear catalyst.
